Buying a waterfront home part 3

 

 

How much room do you need?
If you own a home with nearby recreation and sightseeing, expect people to come out of the woodwork. Everyone will be your friend. Larger homes, with more bedrooms, a 3/2 and up always rent better. So if you can, get a home with extra space.

 Type of Construction or is it built to last.
The age of the home will determine the building code that it was built to. In the Keys newer homes have to be built to strict specs as to wind handling characteristics.
Also, look for low maintenance homes.
Lots of homes in the Keys are made of concrete block and have pea-rock for yards and the outside is stucco over concrete or frame. This means lower maintenance, which is very important for an absentee owner.

Finding renters
Does the home have good rental potential and is there local rental management available?
This is a very important consideration, both for long term and short term vacation rentals.
Remember, even if you don’t want to rent, this can be an important consideration for a future buyer or if your situation changes.

Home maintenance.
Are there nearby electricians, plumbers, appliance stores and general contractors.
If anything does happen, the prices to have things repaired or replaced will be less if there is competition and service people are nearby.
Check with the REALTOR you are talking with to get a Vendor list of who the Real Estate company uses to service their rentals and offices.

Rules and Regulations
Make sure you are clear on and have copies of any deed restrictions or condo docs as to what is allowed and what is not. Too many rules can be appetizing for some but a turnoff for future buyers. For example if you have children who will want to use the property in the future as a college break, lots of communities can prohibit it.

In conclusion, the upper Keys offer good investment potential from an appreciation aspect and income potential from renters.
Regarding Appreciation.
Because Miami and Ft Lauderdale are a short drive away, people there look to the Keys as a getaway. Think New York and the Jersey shore. We sell a majority of homes to people from these areas.
Income potential.
About 50% of the vacation renters in the Keys are from Florida. They come here because the Keys are a completely different experience. This means as Florida grows (it is on pace to be the 2nd largest state in the USA by 2010) we will have more people looking to vacation here. This will drive prices up and make rental occupancy rates climb even more.

 

Provided as a service of
Pat & Curt Barlow
Coldwell Banker Schmitt Key Largo

direct - (305) 852-2501 patandcurt@bellsouth.net http://TheBarlowTeam.com

Buying a waterfront home part 2

Boating access and controlling depth
Is there direct boating access on the property? If so, how large a boat can you have behind the home? This is determined by what we in the Keys call controlling draft or depth. For example: If a boat is under 30ft in most cases 3 ft draft is OK. Draft means...what is the lowest water depth you have to go through to get to open or deep water.If you have a sailboat or 50 ft boat you will need deeper draft such as 5ft.
Now..obviously if you have a 50 ft sailboat behind your home, the canals or waterways have to provide you with turn-around room.
If the access is deep draft, then expect prices to go up. If there is no water acess at the home or the draft is for kayaks only, in most cases expect a drop in price.
If there is no direct water access...how far is the nearest boat ramp or is there a boat slip available? If so, is it included and what is the draft out of the boat slip.
So the boating issue has a very direct effect on pricing here. Neighborhoods with bigger canals and deep draft boating are generally home to the Million dollar and plus homes.

Nearby Medical and shopping options
These are very important considerations. If there is an accident, how far away is a hospital?
In the Upper Keys we have Baptist hospital in Tavernier which is an excellent option.
If you need groceries or restaurants, what is nearby?
Oftentimes vacation properties can be secluded and don’t offer easy access to the above. At first being remote can seem as desirable, but in the end it can grow old quickly.
This also affects home values by the way. If you can have the vacation feel and recreation, yet have amenities nearby, the prices go up.
On thing about the upper Keys is that Miami and South Beach are just about an hour away and World famous Key West, 2 hours.

Provided as a service of
Pat & Curt Barlow
Coldwell Banker Schmitt Key Largo

direct - (305) 852-2501 patandcurt@bellsouth.net http://TheBarlowTeam.com

Buying a waterfront home part 1

Buying a waterfront home

First off, congratulations at looking to the Keys for a possible vacation home. The good news about the Keys from an investment angle are:

1. There is only so much waterfront or Coastal property available.
2. The Keys have strict environmental laws that affect building permits. This means there are only so many homes and always will be a limited number of homes here. One big reason for this is there is just ONE Highway in and out of the Keys. (US1) If there is an emergency, people need to have the ability to leave quickly and so for this reason alone, the Keys will never be California. The other main environmental consideration is the water quality. The Keys main attraction are water sports and Monroe County is going to make sure that our waters are clean and usable.

To consider when purchasing any waterfront vacation home and how the Keys measure up:

Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value.  This is per an article by a much published author named Soren Anderson,  a writer from Manchester College.

Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys, about the only thing you cannot do year round are mountain climbing and white water rafting.

Provided as a service of
Pat & Curt Barlow
Coldwell Banker Schmitt Key Largo

direct - (305) 852-2501 patandcurt@bellsouth.net http://TheBarlowTeam.com

 

Affordable waterfront keys home

543956 Residential Active $359,520

SPECIAL PRICE UNTIL JUNE 10TH - $359,520! Cute CANALFRONT mobile in quiet, friendly neighborhood, which is converting to single family homes. Move right in or replace with your dream home! ROGO exempt letter in hand, so no waiting! Step down to your concrete dock and into the boat! Nice deep Oceanside canal with direct Ocean access for fishing or diving! GREAT PRICE FOR A PIECE OF PARADIS
Directions: Turn Oceanside into Wynken Blynken & Nod Mobile Home Park. Turn left, go around curve and turn right on Humpty Dumpty, down almost to end, home on right.

Coldwell Banker Schmitt Key Largo
direct: (305)852-2501
FAX: (305)451-1220
Office: (305)852-2501
patandcurt@bellsouth.net
http://TheBarlowTeam.com

Buying a waterfront home in the Keys part 2

Boating access and controlling depth
Is there direct boating access on the property? If so, how large a boat can you have behind the home? This is determined by what we in the Keys call controlling draft or depth. For example: If a boat is under 30ft in most cases 3 ft draft is OK. Draft means...what is the lowest water depth you have to go through to get to open or deep water.If you have a sailboat or 50 ft boat you will need deeper draft such as 5ft.
Now..obviously if you have a 50 ft sailboat behind your home, the canals or waterways have to provide you with turn-around room.
If the access is deep draft, then expect prices to go up. If there is no water acess at the home or the draft is for kayaks only, in most cases expect a drop in price.
If there is no direct water access...how far is the nearest boat ramp or is there a boat slip available? If so, is it included and what is the draft out of the boat slip.
So the boating issue has a very direct effect on pricing here. Neighborhoods with bigger canals and deep draft boating are generally home to the Million dollar and plus homes.

Nearby Medical and shopping options
These are very important considerations. If there is an accident, how far away is a hospital?
In the Upper Keys we have Baptist hospital in Tavernier which is an excellent option.
If you need groceries or restaurants, what is nearby?
Oftentimes vacation properties can be secluded and don’t offer easy access to the above. At first being remote can seem as desirable, but in the end it can grow old quickly.
This also affects home values by the way. If you can have the vacation feel and recreation, yet have amenities nearby, the prices go up.
On thing about the upper Keys is that Miami and South Beach are just about an hour away and World famous Key West, 2 hours.

Buying a waterfront home in the Keys part 1

Buying a waterfront home

First off, congratulations at looking to the Keys for a possible vacation home. The good news about the Keys from an investment angle are:

1. There is only so much waterfront or Coastal property available.
2. The Keys have strict environmental laws that affect building permits. This means there are only so many homes and always will be a limited number of homes here. One big reason for this is there is just ONE Highway in and out of the Keys. (US1) If there is an emergency, people need to have the ability to leave quickly and so for this reason alone, the Keys will never be California. The other main environmental consideration is the water quality. The Keys main attraction are water sports and Monroe County is going to make sure that our waters are clean and usable.

To consider when purchasing any waterfront vacation home and how the Keys measure up:

Is there a view?
Views really do matter. An unobstructed Ocean view adds as much as 60% to the value of a home per the Journal of Real Estate Finance and Economics. Proximity to Golf courses or a park can add as much as 20% to a homes value.  This is per an article by a much published author named Soren Anderson,  a writer from Manchester College.

Consider the recreational activities…
The What and the When.
For example in a Ski resort area, your options are limited due to weather considerations and the total amount of activities available is definitely less.
*In the Keys, about the only thing you cannot do year round are mountain climbing and white water rafting.

Florida Keys -Fishing Capital of the World !

Fishing Capital of the World !

Fishing and The Florida Keys are the perfect match!  There are two main types of fishing: Backcountry and Offshore or Deep Sea fishing

Backcountry or Flats fishing is done with a guide and generally in small skiffs which are usually between 16-20 feet long, and hold 2 anglers plus the captain. You can either fly fish or use light tackle.   You will go into the mangrove shores of Florida Bay, the Everglades, and the uninhabited islands in the Bay or across the Bay to Flamingo.  These skiffs go into shallow water where you’ll find the elusive Bonefish and Permit as well as giant Tarpon, sharks, redfish and sea trout. This is not only exciting fishing, but your guide will tell you great stories about the folklore of the Keys and point out all the wildlife surrounding you- both under the water and on land!  This is something not to be missed!

Just bring your lunch, a hat, sunglasses and sunscreen - your Guide will do the rest!

Florida keys-diving capitol to the world

Diving Capital of the World!

The Florida Keys are home to the only living coral barrier reef in North America, offering some of the best scuba diving and snorkeling  in the United States. Frequently called “The American Caribbean”, with the warm waters of the Gulf Stream just offshore, there is an abundance of beautiful reef fish, corals, sponges and wrecks just teeming with fish.

You can find a dive for just about everyone, from shallow reef trips in 10’ of water, to 120’ wreck dives.  The visibility is good, the water is warm, and the corals and fish are spectacular!  Here in Key Largo is the famous protected marine park, John Pennekamp, known for its incredible variety of marine life; an excellent place for novice divers as well as seasoned ones and, of course, photographers!

On any given day you will see an amazing assortment of tropical fish, nurse sharks, rays, and moray eels. Don't forget the fabulous lobsters to be found during season! A top priority in the Keys is the preservation of our reefs so they can be enjoyed for many years to come, so please take care.

Using a home as a rental part 3

Where do we get the renters
Most of our renters come through the Internet and one of sites.
www.floridakeysrealestate.com www.rentalsfloridakeys.com
• All of our sites are linked to Key West or www.flakeys.com which averages over 500,000 views per month. Basically if anyone looks at Key West they find our sites.
• The balance come through National Advertising placed in magazines such as Island Living, Florida Sportsmen, Salt Water fishing and Dive magazines as well as regional publications and our own buyers guide.
• Also all of our computers are networked meaning if someone is looking for a specific situation such as open water it will show up on the computer immediately as to area, availability and price plus all other details.
Who handles the renters?
• All of our offices have a dedicated rental manager whose job is to rent the homes.  In conclusion, there is a lot to discuss on rentals and this is used to just get you information regarding the main issues.BUYING RENTAL UNITS-DUPLEX-OR MORE UNITS
• There are Duplexes throughout the lower Keys and a few 3-4 unit complexes. The 3 to 4 units are generally in Key West or Marathon.In looking at the return, generally it runs around 10% in the Keys÷this includes the large guesthouses. When a return of 14% or more comes up they generally go very quickly.
DUPLEXOn the water generally start at $600,000. Nicer ones (maintained-updated appliances-tile) go for $775,000 and up. A dry lot duplex can start at about $550,000. These generally have the best return percentage.3 TO 4 UNITSGenerally in Key West or Marathon.
• In Key West, these can be good, especially if it's located in Old Town and one or more of the units has a transient license, meaning it can legally rent weekly.
• These type of situations run from about $850,000 and up. In Marathon from about $750,000 and up.MOTELS-MULTIPLE UNITS
• These are generally found in upper keys, Marathon and of course Key West. The more affordable ones ( one to two Million dollars) are generally from Marathon north to Key Largo. See Commercial section of my site. If there is a specific situation you want please let us know.

Using a home as a rental part 2

• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $350.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and we have the signed contract, then it can go into the rental pool.SPECIFICS OF THE AGREEMENT
1 Coldwell Banker agrees to manage the home for a period of one year with the contract automatically renewing unless either side gives 90 day notice.
2 Our fee for vacation rentals is 20%---what is really important here are the following points.
• There are no hidden fees-such as credit card charges etc.
• We typically send you the money within 2 weeks of receiving it÷we do NOT hold it until the first of each month or split it out each month. We always collect cashiers checks from the renters so when the money is received, it is quickly processed through our main office and sent to you.
• There are no charges for going up on our Web sites÷5 in all.
• There are no charges for the pictures that are taken.
• There are no charges for any specific flyers, brochures or ads that we run on our rental properties.
• Please go to www.rentalsfloridakeys.com
• We actively and aggressively manage your home. Meaning we get the best customers (qualified) We play by the 2 people per bedroom limit, and we work to keep it filled other than your personal usage
• All of the computers in the 5 Coldwell Banker Schmitt offices throughout the Keys are linked. If a customer inquires about a home, it will show up on the rental agents computers.
• We have Handymen, Electrical, Plumbing, Landscaping, Pest control and appliance people that respond when there is an emergency.BOOKING THE HOME FOR THE OWNER.
This is very simple. You would call the rental manager and have him block out the home when you want to use it. We don't charge a fee for any of that. Generally you would have us arrange for the home to be cleaned after you leave.FLORIDA BED TAX Florida charges a 11.5% tax on all hotel, motel, home rentals. We collect the money from the tenant and disperse it to the tax agency.CLEANING SERVICE The tenants pay this fee which varies based on the size of the home. On average a 2/2 is $100 and a 3/2 is $125.00.PETS AND SMOKING If the home is no smoking, that is put in the rental file and the tenants are informed before they book the home. If the home allows pets, we collect a pet deposit which is added to the standard security deposit of $500.
How are emergency repairs handled?
• We have handymen available that can take care of small emergencies or updates, as the owner requires. Since our company manages over 300 rentals, we also have a good working relationship with Plumbing, Electrical, Appliance and Carpet, Tile people.What about Hurricane preparation?
• In the event of an impending Hurricane, the handyman or someone else can be hired to put up the storm shutters, bring in the lawn and patio furniture, etc for a fee-as we have too many homes for us to do them individually. This agreement should be set up in advance by the homeowner and the handyman. We will help you find someone to do this.What makes a good Vacation Rental
• A clean, well-maintained home on a canal or open water.
• Typically one of the bedrooms should have a set of twin beds if the renters are bringing children.
• Good linens and towels and a backup set. This is especially important for monthly renters.
• The washer, dryer and refrigerator should be newer if possible.
• A good Television hooked up to cable (about $35.00 per month) and a CD or tape stereo system.
• The kitchen must be completely outfitted. A microwave is also very important for renters.
• Patio and/or Lawn-Deck furniture. If there is an upper deck, a table and chairs plus loungers.
• On the water side, below a set of loungers and chairs.We get a lot of repeat renters÷if the renters have a good experience, they will come back. We see this especially with people that book two to three months a year.