As the economy downturn begins to bite hard into family life and businesses, there is one area that is experiencing an upturn. The rental market in Miami is beginning to boom amongst the doom and gloom of the economy in general. The reasons for this are mainly twofold. People who would like to buy a house a now finding it difficult to secure a mortgage in today's financial climate and so are turning to renting a property as a solution. However, those who have the credit available, or are cash buyers may be waiting until the housing market settles before they buy, and these too are looking (or may be lookin) at renting a property until they can see how the housing market pans out.  This increase demand for single family homes has caused rental prices to rise.

 In my opinion , rent in our properties is up about 10-15% from the last 3-4 monts. There are more listings available than before and the rentals market is getting very busy.

 If you need help with renting your home or investment , you may call me at

305-801-7347 

How Short Sales and Foreclosure will affect people's credit in  Miami market

 In most Real Estate markets, specially in Miami and Fort Lauderdale, most of the people that took variable interest rates on their mortgages not too far ago, are in a not so good situation since more of these rates are adjusting right now. This will definitely will be a hole in most homeowners budget.

  We also have homeowners in this Miami market where their property is worth less than what they currently owed on their mortgage.  This will cause the big question for them: Should I go the foreclosure or the Short sale way in order to sell my home?

Its true and we all know that a foreclosure and a short sale will affect negatively on our credit records, but which one is the worst?

Lets take a look at both consequences: In a foreclosure, your credit may drop up to 250 points. If a property gets successfully foreclosed,  and then sold at an auction in a  Miami/Fort Lauderdale  court and in less than what you owed, a lender can still ask the debt to be paid in what we called a deficiency judgement. With this type of judgement, the lender can also come after other assests and will definitely show on the credit report and could result in a tax lien. The amount owed could be also considered as a forgiven debt which is treated as income an you may have to pay taxes in this amount. In conclusion in a foreclosure, your credit goes from good to worse in the least amount of time.

 In a short sale, If the borrower wants to sell the property, he may have an agreement with the lender to sell it a a lower price from what is owed.  This is not common to show in a person's credit, and the owner may negotiate the way its reported on the credit report. This sale could be reported as a "Paid Settlement" and this will drop the credit score for 50-100 points only.

 Every short sale or foreclosure should be treated in a different manner. If you need help with your short sale or Foreclosure, call me at 305-801-7347.

Talking about restaurants, here are my top 3 in Aventura.

1- Paquitos - Great food and service. Their fresh salsa goes well  with their chips. Try not to eat too much so you save space for the main dish; Specially their tasty Fajitas. They also have a great variety of margaritas. The restaurant decor is very colorful and Mexican. Try to avoid Fridays if dont want big crowds.

2-Houston's Aventura- A more upscale restaurant but great food as well. There is usually a wait, but is worth waiting for.  My favorite dish  here  is the coleslaw with pork chops. Yummy! Restaurant is waterfront so you can enjoy beautiful Bay views. Very elegant atmosphere.

3- Estancia Argentina Aventura  -If you are in the mood for inexpensive and good Argentinean stylye meat, this is the place. There is no wait staff, so you order your food at the stand and you pick it up. A great Steak and Fries costs less than $10. Their very best empanadas are less than $2. The place is a combination of restaurant and a market , plus it has a great variety of wine. The staff is very friendly too.

I also have a special mention of two places I love in Miami lakes:

Thai Cafe Miami Lakes- This is the best place for lunch if you are in Miami Lakes main street. Most of dishes are less than $8. My favorite dish here is the Shrimp Pad Thai. Delicious!! 

El aguacatal- Located close to Miami Gardens Drive, this family restaurant has a great variety of Colombian cuisine.

If you need an expert to help you buying or selling a property ,  that knows about Miami Lakes and Aventura, please call Juan at 305-801-7347

 The amendement  1, of  the tax relief package, passed about two weeks ago and contains  a number of revisions. The three "biggies" are: PORTABILITY of homestead  property tax assessments,  DOUBLING  the homestead exemption, and CAPPING the increase in assessed value of non-homesteaded property.

PORTABILITY- Portability means the owner of a homesteaded residential property can transfer the difference between their market value and assessed value to a new homestead property purchased within two years of the date they sold the old property. There is a $500,000 limit  on the difference in value that can be transferred.  Residents who closed the sale of their homesteaded  property after January 1, 2007 qualify for portability.

Example, you purchased  homesteaded property in 2000 for $160,000. Its present assessed value is $175,000 even tough its market value is $300,00. The difference between its assessed value and market value is $125,000. If you sell and then purchase a new homesteaded property for $300,000, the assessed value on your new property will be $175,000, the same as the one you sold. If, instead, the new property cost $400,000, your assessed value would be $275,000 (the $175,000 from your old property plus the $100,000 you paid in excess of your selling price).

There is no limit on how many times you can use "Portability" from one property to the next. The form to apply for Portability is available on the Property Assesor's website http://www.bcpa.net/.

It is possible that a legal challenge could alter or eliminate this new Portability provision, but property owners who applied for and received the benefits of Portability prior to a court's ruling would most likely not be affected.

DOUBLE EXEMPTION. AMENDMENT 1 also "doubled" the $25,000 homestead exemption that has been in place for years for $50,000. However, it exempted  the public school portion of the tax bill. The result is that the average property owner will see a reduction in their tax bill for 2008. This new exemption amount will be automatically applied to homesteaded properties.

RENTAL AND SNOWBIRD CAP -The Cap applies to non-homesteaded  properties like vacation homes, rentals and commercial property. It caps the increase in their assessed value to 10% annually beginning in 2009 (2008 is the "base" year , so the cap will not appear until 2009 tax bills). This operates exactly like the 3% cap on homesteaded properties.

Note: This information is only intended to give an overview of these tax issues. Please refer specific questions to the Tax appraiser or other Tax professional.

I always get questions from first time homebuyers about why buying is better than renting. My approach is the following: I think that almost always is  better to own your home rather than to rent. After all, building equity  and writing off your mortgage interest is one big advantage. And if you do things right, when selling you'll be eligible for one of the best tax breaks around (if owning your property for two or more years). But that doesn't mean that everyone should be a homeowner ( my honest opinion).  For example,  if you think your move to a place is short term and the interest rates are high and property values deteriorating, it may be worthwhile to deal with a landlord for a while.

If you need help with buying a propery, call Juan at 305-801-7347