Condo.com Blog

Hawaii Kai Real Estate Condo Market Activity for July, 2008

Thu, 07 Aug 2008 20:01:27 GMT

The Hawaii Kai condo market had 16 sales in July, 2008, ranging from $380,000 for a one bedroom unit in the Esplanade, to $805,000 for a four bedroom home in Kuapa Isle.

Average Days on Market for the month was 62, average price $517,000. Complexes with sold units included the Commodore, Esplanade, Kaimala Marina, Kalele Kai, Koko Isle, Kuapa Isle, Lalea, Marina Palms, Mariners Village 3, Mawaena Kai, Moorings, Naniwa Gardens, and Plaza Hawaii Kai.

These figures compare with June statistics of 13 sales, average Days on Market of 49, and average sales price of $625,000. The small numbers make fluctuations look large, but one or two big sales can significantly impact the average sales price. In June, the low sale was $453,000, a two bedroom unit in the Esplanade, and high sale was $800,000 in the Peninsula at Hawaii Kai.

Visit my Hawaii Kai real estate market analysis page on my web site for full details: barbara@barbarashawaii.com
808-226-2537

Wilmington Home Equity ranks High

Thu, 07 Aug 2008 18:15:22 GMT

Real Estate by the news media is viewed as a national market but in fact all Real Estate is local. The Cape Fear Region, including Wilmington NC, has been affected by the slowing in the Credit Markets but the impact has been less drastic than many in the nation. The Forbes list of 20 cities with high Home Equity ranks Wilmington NC among them. (see article below.)

Wilmington's Home Equity ranks High in 'Forbes' list

Published: Wednesday, August 6, 2008 If the local housing market has got you down, take some heart from another of Forbes' lists of superlatives and negatives.

Wilmington ranks No. 20 in the magazine's list of cities with the most home equity. Home equity as a percent of home value was 61 percent in Wilmington, or $117,470, Forbes said, down from 64 percent in 2007.

The drop in year-over-year figures was true most places, but Wilmington's and others stood in stark contrast to Sacramento, Calif., and Grand Rapids, Mich., where home equity is 28 percent, falling from 57 percent and 46 percent, respectively, two years ago, Forbes said.

Southern cities dominated the top 20 list. The city with the most equity was Beaumont, Texas, 75 percent at $76,458; followed by Corpus Christi; Gulfport, Miss.; Charleston, W.Va.; and El Paso.

But cities outside the South also were on the list: Honolulu; Utica and Binghamton, N.Y.; Allentown and Scranton, Pa.; and Atlantic City.

Forbes used data from Moody's Economy.com on the country's 200 largest metro areas. Housing values have dropped 7.7 percent nationwide since last year, according to the National Association of Realtors.

Web Link: Wilmington's Home Equity ranks High in 'Forbes' list
WordPress Weblog: Wilmington NC Home Equity ranks High
Zolve Blog Post: http://zenkey.zolve.com/readblogs/2008/08/07/wilmington-nc-home-equity-ranks-high.aspx
Activerain Blog: Wilmington Home Equity ranks High nationwide
Zimbio Article: Wilmington NC Home Equity ranks High

Popular Home Searches in and around Wilmington North Carolina:

Wilmington NC Real Estate: Homes for Sale in Wilmington NC - You will find all the property listings in Wilmington North Carolina with an easy intuitive MLS search. Free Access and lots of Wilmington Buyers' Tools. From Kure Beach to Castle Hayne - we have Realtors to Cover it all...

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Leland Real Estate: Homes for Sale in Leland NC - You will find all the property listings in Leland North Carolina with an easy intuitive MLS search. Free Access and lots of Leland Buyers' Tools. Fastest Growing County and fast becoming Western Wilmington NC...

New Hanover County Real Estate: Homes for Sale in New Hanover County - find all the property listings for sale in the county that includes Wilmington, Wrightsville Beach, Carolina Beach, Castle Hayne, Kure Beach, and all the wonderful towns far and in between.

Castle Hayne Real Estate: Homes for Sale in Castle Hayne NC - You will find all the property listings in Castle Hayne North Carolina with an easy intuitive MLS search. Free Access and lots of Castle Hayne NC Buyers' Tools. The Home of GE and Industry - slightly north of Wilmington NC...

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Oak Island Real Estate: Homes for Sale in Oak Island NC - You will find all the property listings in Oak Island North Carolina with an easy intuitive MLS search. Free Access and lots of Oak Island Buyers' Tools. Island Living is not a dream - visit this charming town; the ocean beckons...

Hampstead Real Estate: Homes for Sale in Hampstead NC - You will find all the property listings in Hampstead North Carolina with an easy intuitive MLS search. Free Access and lots of Hampstead Buyers' Tools. The Premiere Real Estate Agency in Pender County...

Jacksonville NC Real Estate: Homes for Sale in Jacksonville NC - You will find all the property listings in Jacksonville North Carolina with an easy intuitive MLS search. Free Access and lots of Jacksonville Buyers' Tools. Camp Lejeune information and lots or resources available...

Burgaw Real Estate: Homes for Sale in Burgaw NC - You will find all the property listings in Burgaw North Carolina with an easy intuitive MLS search. Free Access and lots of Burgaw Buyers' Tools. Home of the famous Blueberry Festival - you have to come visit...

Hawaii Kai MarinaFront Townhome Sales through June, 2008

Thu, 07 Aug 2008 17:49:52 GMT

Owning waterfront anywhere on Oahu, but especially in Hawaii Kai, is a very good real estate investment with a prestigious address. Prices vary widely based on the square footage on the water, whether or not a deeded boat dock is included, the view, and completed renovations. Most of the complexes were built in the late 1960’s, and many units have been extensively remodeled these last few years.

For the first half of 2008, 20 sales of Hawaii Kai marinafront townhomes have closed, ranging in price from $245,300 (leasehold) in Kaimala Marina to $805,000 in Koko Isle.

Visit my Hawaii Kai real estate market analysis page on my web site for full details: http://www.movetohawaiikai.com/Hawaii_Kai_Market_News/page_1893904.html

The Honolulu Board of Realtors issues very complete statistics for monthly sales on Oahu. Contact me for a free copy.

Barbara Abe, Realtor for Hawaii Kai
barbara@barbarashawaii.com
808-226-2537

Koko Isle: a Very Prestigious Address in Hawaii Kai MarinaFront Homes

Thu, 07 Aug 2008 17:48:19 GMT

Koko Isle is a private island accessed from Lunalilo Home Road and adjacent to Koko Marina Shopping Center. There are 124 townhomes of many different styles - 2-bedroom/2-bath, 3-bedroom/3- bath, 3-bedroom/2.5-bath – and different sizes, 1,268 – 1.700 sq ft.

Most of the homes are on the water and many of them have boat docks. Amenities include swimming pool, clubhouse, exercise room, recreation area, resident manager and a walking/jogging path.

Koko Isle in Hawaii Kai is a very attractive address, even though built in 1968. Sales in 2007 ranged from $619,000 to $970,000, and the 3 sales in 2008 so far have been $565,000 to $805,000. Maintenance fees are about $605/month.

Visit my Hawaii Kai real estate market analysis page on my web site for full details: http://www.movetohawaiikai.com/Hawaii_Kai_Market_News/page_1893904.html

The Honolulu Board of Realtors issues very complete statistics for monthly sales on Oahu. Contact me for a free copy.

Barbara Abe, Realtor for Hawaii Kai
barbara@barbarashawaii.com
808-226-2537

Pressure Builds On Florida’s Largest Bank

Thu, 07 Aug 2008 17:11:51 GMT

Florida’s largest bank was already under pressure from analysts, investors, and third-party governance groups concerned about the institution’s growing number of problem mortgages even before Thursday’s New York Times article donned the Miami-based lender as the “Tempest for a Bank That Bet on Risky Loans.”

BankUnited, Florida’s largest based bank with assets of $14.3 billion and the originator of the “59 Minute Mortgage” during the real estate boom years, is now “scrambling to raise $400 million in capital, an amount nearly eight times the bank’s shriveled value on the stock market,” according to the article.

BankUnited has a market capitalization value of $47 million, according to Yahoo! Finance.

The stock price of BankUnited (Nasdaq: BKUNA) dropped by 12 percent to $1.32 per share in midday trading Thursday. The current pricing means BankUnited’s shares have plummeted about 93 percent from the institution’s 52-week high price of $19.69 per share, according to Yahoo! Finance.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.

Copyright © 2008, Condo Vultures® LLC

Ten Aragon Condo

Thu, 07 Aug 2008 14:25:27 GMT

Ten Aragon in Coral Gables

About the Ten Aragon Coral Gables

Designer: Charles Allem
Description: Residential, Retail
Type: Mix-Use Building
Floors: 15
Units: 184 residences
Number of Bedrooms: 1, 2 & 3
Unit Sq. Ft. Range: 753-1,654
Price Range: $ 288,000's - $ 760,000's
Amenities: Temperate Controlled Pool, Fitness Center, Valet

Ten Aragon, located in the historic community of Coral Gables, Florida was purchased for several specific reasons. The mixed-use property has residential, commercial, retail, and office and garage space all in one facility on the historic "Miracle Mile". Upscale and quietly elegant, "The Gables" has the enduring reputation as "the City Beautiful".
Ten Aragon has 184 apartments, most of which have unobstructed views of downtown Miami, Biscayne Bay and South Coral Gables. The property is an 8 month old, 511,701 square foot structure with 15 stories on 1.99 urban acres along the Miracle Mile in Coral Gables Florida. The property consists of a 5 story base and 10 story residential tower. There are 184 apartment units that are to be converted to condominiums, 65,000 square feet of commercial, retail and office space and 615 parking garage spaces. The residential tower includes 1 bedroom/1 bath,
2 bedroom/2 bath, and 3 bedroom/2 bath apartments. Amenities include an outdoor swimming pool and spa, a fitness center and a business center.
Ten Aragon closed on December 23, 2004 as a joint venture between Prospect Capital Group and the Robert Martin Company.

The Happiest Countries In The World

Thu, 07 Aug 2008 13:42:38 GMT

10. Luxembourg

Being the world’s richest country, its no wonder Luxembourg’s residents are happy. This European country is so small it has an army of only 800 people, and no navy or air force. They do however share the ownership of a military cargo plane with Belgium. Luxembourg also holds the world record as the country that consumes the most alcohol in the world per citizen.

9. Guatemala

The ninth happiest country borders with Mexico and is surrounded by the Pacific Ocean and the Caribbean Sea. Unfortunately, repeated hurricanes and earthquakes take a toll on Guatemala’s land and residents. Their main exports are coffee, sugar and bananas.

8. Canada

Canada is one country that truly wants world peace. For one, Canada has never cancelled its relations in Cuba and it has declined to take part in the Iraq war. Also, as one of the United Nation’s leaders in peacekeeping missions, Canada has launched a $1.5 billion initiative to develop vaccines for poverty stricken countries.

7. Sweden

Sweden’s residents get hooked up with some sweet deals. The state provides universal tax funded child care, parental leave, health care, education, retirement pensions and sick leave. Swedes do pay much higher taxes, but they are okay with their “welfare state” model. After all, who can complain about unlimited high quality services?

6. Australia

Australia is the only country in the world that consists of an entire continent. Australians enjoy the largest collection of living things on the planet- the Great Barrier Reef. They are also known for playing rugby and…partying! I guess there is nothing like relaxing with your ‘mates’.

5. Finland

You may not know much about Finland, but you have probably heard of Nokia. First off, Finland is the country that brought us Nokia, and secondly, in 2206 Nokia generated more revenue than Finland’s entire budget. No wonder Finland has the most competitive economic budget in the world.

4. Iceland

Iceland is rich in volcanoes, geysers and…happiness! Due to its geothermal power, Iceland gets its electricity and hot water for pennies. This cheap local energy makes the country very cost effective. In fact, Iceland is the world’s most developed country because the country effectively utilizes its land.

3. Austria

Compared to the United States, Austria is managed in a much different way. It is one of few countries that allows legal voting beginning at age 16. Furthermore, upon turning 18 all males must take part in a 6 month military service. Austria has also declared itself as a neutral country and takes part in peace keeping missions only. Another unique factor is that due to its wide-spread use of wind, solar and hydro power, Austria produces 80% of its energy from renewable resources. Education is also mostly free with the exception of a small student semester fee of about $583. Needless to say, Austrians do not graduate in debt.

2. Switzerland

Switzerland holds a spot as the world’s 10^th richest country thanks to its production of cheese and chocolate. The country used to be a magnet for illegal money because of its lenient bank policies but has since tightened the system. Now, Switzerland focuses on keeping the country clean and is the top garbage recycler in the world.

1. Denmark

Similar to Sweden, Denmark provides its citizens with mostly free services. However you can expect to pay 72% of your money to the government since this country has the world’s highest taxes! The benefits are mostly free education and health care but larger purchases such as automobiles can rack up quite the bill. As a result, people in Denmark do a lot of walking, bike riding, and take advantage of one of the best public transportation systems in the world.

MGM Gets Half Of Needed Financing On There Terms. Wall Street Is Just Jealous.

Thu, 07 Aug 2008 01:19:27 GMT

I am sure if you are receiving any type of news e-mail alert you have been overwhelmed in the last few days with stories about MGM's financing comments. I understand that Boyd gamings Echoleon project has been put on the shelf but MGM's City Center is definitely going no where but up. I sifted through all the un-true speculative blog posts and articles today and was able to find to very well written articles that were actual reporting not just giving a one sided opinion. One of the articles was in the Review Journal and the other was in Forbes. Both article explained how all of the rumors about financing trouble was just hot air and things are moving along despite what Wall Street may make up. City Center is moving along just fine and will be completing thousands of new residential luxury High Rise Condos in late 2009 on schedule. If you are interested in owning your very own luxury condo at MGM's City Center you need to be prepared to experience a one of a kind lifestyle that can't be duplicated. There are unites available in each Residential High Rise buildings in City Center, Veer Towers-Mandarin Oriental-Vdara Condo/Hotel-The Harmon. There are two quotes from MGM Mirage Chairman and Chief Executive Officer Terry Lanni which sum it all up very plainly so everyone can understand, the first is from the report Forbes did about MGM and it goes like this "That's an advantage that we had - we weren't forced to accept terms that we just didn't think were necessarily ones that were the most reasonable and advantageous," Lanni said. "And by taking more time, and seeing how the economy now - at least here in Las Vegas - has not fallen off the cliff as some people have suggested, we'll be in far better position." & the second comes from the Review Journal "You can take a look at us and our competitors," Lanni said. "We're still making money, although not as much as we have in the past." Thank you Mr. Lanni for stepping up to clear the air.

Video Updates- Las Vegas High Rise Condo Construction

Thu, 07 Aug 2008 01:17:02 GMT

Despite all the noise about Boyd Gaming's Echelon resort halting construction there is still plenty of things happening on the world's favorite BLVD. Minus Echelon, Las Vegas Strip construction still remains to thrive and continues to grow like we have never seen before. Check out some of the developments under construction now here in Las Vegas that are offering residential Luxury High Rise Condominiums. The video was taken a few days back but things still are moving right along to many completion dates in 2009.

CLICK HERE TO VIEW VIDEO

Renters Filling New Miami Condos, But Will Rates Hold?

Wed, 06 Aug 2008 22:38:02 GMT

Less than 800 condo units are currently available for rent in the Greater Downtown Miami area despite nearly 21,000 new residences being built in the last five years, according to a new report from Condo Vultures® LLC.

Of the units that are currently available for lease, the rental rates being agreed to on an annual square foot basis per month in the Greater Downtown Miami area are about $1.85 for a city view and $2 for a water view, which is about 30 percent cheaper than in Miami Beach’s South Beach neighborhood, according to the report.

The Greater Downtown Miami area is defined as the Rickenbacker Causeway north to the Julia Tuttle Causeway, Interstate 95 east to Biscayne Bay. The Brickell Avenue area, Downtown Miami, and the Biscayne Boulevard Corridor together comprise this 60-block stretch from south to north.

“Despite all of the speculation surrounding the Downtown Miami condo market, rental activity is surprisingly strong – for the time being – with tenants snapping up units at a pace that has kept many investors out of foreclosure,” said William Betancourt, a rental specialist and licensed real estate agent with with Condo Vultures® Realty LLC. “We have found that there is a lot of demand from young professionals to occupy many of the new projects in Greater Downtown Miami. Most of our renters already work and socialize in the area so it is a natural progression for them.

“It also doesn’t hurt that renters can live in never-before-occupied units at attractive prices. ”

This year 1,102 condo units have been leased in the Greater Downtown Miami area, with leases ranging on a monthly basis from $950, or $1.92 per square foot, for a 496-square-foot studio in a new waterfront facing building in the Biscayne Boulevard Corridor to $9,000, or $3.04 per square foot, for a new waterfront condo with four bedrooms and 2,959 square feet on Brickell Key, according to the Multiple Listing Service.

The median lease price transacted is $1,600, or $1.89 per square foot, for a one-bedroom unit with 846 square feet in a new waterfront condo in downtown Miami.

Renters are leasing up one-bedroom units at a quicker pace than the two-bedroom units, which traditionally are the most popular, according to the report.

There have been 538 one bedroom units that have rented in the Greater Downtown Miami area with the median monthly price being $1,450, or $1.85 per square foot, for a 783-square-foot unit in a new building on the Miami River.

Compare that to 437 two-bedroom units that have rented with the median price being $2,000, or $1.65 per square foot, for 1,212 square feet in a new building on the Miami River.

Studios have been slightly more popular than three-bedroom units. There have been 62 studios rented in 2008, with the median monthly price being $1,150, or $2.55 per square foot, for a 451 square foot unit on the Miami River, while 60 three-bedroom units have rented with the median monthly price being $2,650, or $1.87 per square foot, for a 1,419-square-foot unit also located in a new building on the Miami River.

There were three four-bedroom units that rented this year with the median monthly price being $8,000, or $2.34 per square foot, for a bayfront building with 3,415 square feet. Only one five-bedroom unit, which was built in 1955 and has 4,250 square feet, has rented this year, at a rent of $3,500, or 82 cents per square foot.

“The rental market is stronger than I have seen it for some time,” said Betancourt, who can be reached at William@CondoVultures.com. “The tightening of loan requirements, rising gas prices, and the ability to live in brand new units at investor-subsidized prices all attribute to the robust rental market in Greater Downtown Miami.”

The looming question, though, is whether rental rates will continue to be this robust.

Nearly 90 percent of the new Greater Downtown Miami condo product is already available or scheduled to be delivered this year, and rental rates are still close to $2 per square foot for an unfurnished unit, said Peter Zalewski, a principal with the Bal Harbour, Fla.-based consultancy Condo Vultures® that authored the report.

The flip side is that bulk buyers trying to acquire hundreds of developer units in the Greater Downtown Miami area are projecting rental rates of $1.25 per square foot through 2010, Zalewski said.

"The key to leasing success for landlords in the Greater Downtown Miami rental market will be to continue to maintain prices below the premium rates charged in South Beach," Zalewski said. "If landlords can maintain the pricing advantage combined with the new product available in Greater Downtown Miami, many landlords think renters can be persuaded in growing numbers to leave Miami Beach for a 10-minute drive west over the causeway."

Prospective tenants who are looking today for units in the Greater Downtown Miami area will find that a majority – 53 percent – of the 791 condos currently available for rent are located in the Brickell Avenue area, which is defined by the Miami River to the north and the Rickenbacker Causeway to the south.

Downtown Miami has the next highest number of available rentals with 26 percent of the inventory. This area is define from the Miami River north to the MacArthur Causeway.

The remaining 21 percent of the units for rent are located in the Biscayne Boulevard Corridor, which is located between the MacArthur Causeway north to the Julia Tuttle Causeway.

Rents today in Greater Downtown Miami range from $975 per month for a 758-square-foot unit in a 34-year-old building in the Biscayne Boulevard corridor to $15,000 per month for a 4,000-square-foot condo in a waterfront trophy building on Brickell Avenue.

The median asking rental price is $2,090 for a two-bedroom unit with 1,141 square feet in a new condominium that opened in 2008. This works out to $1.83 per square foot per month.

About 78 percent, or 621 units, of the total condos available for rent in Greater Downtown Miami are priced between $1,000 and $2,500, according to the report. Here is a rounded breakdown:

- 2 units (0.3 percent) are priced at $975 and $995;
- 98 units (12.4 percent) priced at $1,000 to $1,499;
- 254 units (32.1 percent) priced at $1,500 to $1,999;
- 215 units (27.2 percent) priced at $2,000 and $2,499;
- 123 units (15.5 percent) priced at $2,500 to $2,999;
- 32 units (4 percent) priced at $3,000 to $3,999;
- 22 units (2.8 percent) priced at $4,000 to $4,999;
- 22 units (2.8 percent) priced at $5,000 to $5,999
- 17 units (2.1 percent) priced at $6,000 to $9,999;
- and 6 units (0.8 percent) priced at $10,000 to $15,000.

The units available for rent break down this way: 28 units, or 3.5 percent, are studios; 291 units, or 36.8 percent, have one bedroom; 399 units, or 50.4 percent, have two-bedrooms; 63 units, or 8 percent, have three bedrooms; four units, or 0.5 percent, have four bedrooms; and 2 units, or 0.3 percent, have five bedrooms.

The median price for a studio is $1,400 per month for a 485 square foot unit in a brand new condominium project in Downtown Miami on Biscayne Boulevard. This works out to $2.89 per square foot.

For a one-bedroom, the median price is $1,620 for a 750-square-foot unit in a new tower on the Miami River. This works out to $2.16 per square foot.

The median price for a two-bedroom unit is $2,300 per month for a 1,222-square-foot condo in a new building fronting the bay in the Biscayne Boulevard Corridor. This works out to $1.88 per square foot.

For a three-bedroom, the median price is $3,190 for a 1,650-square-foot unit on a waterfront building on Brickell Key. This price works out to $1.93 per square foot.

The median price for a four-bedroom unit is $8,500 for 3,415 square feet in a bayfront building in the Brickell Avenue area. This monthly rental price works out to $2.49 per square foot.

The two five-bedroom condos current available for rent have asking prices of $7,200 and $14,000 per month.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™.

Copyright © 2008, Condo Vultures® LLC

Bulk Buyer Purchases 120 Downtown Miami Condo Units

Mon, 04 Aug 2008 23:35:01 GMT

A $1 billion U.S. opportunity fund paid about $252,500 per unit for the last 120 units in the newly completed 54-story 50 Biscayne condominium tower in downtown Miami, netting the seller $18 million, according to the South Florida Business Journal.

Lubert-Adler Partners, a $1 billion opportunity fund based in Philadelphia, paid $30.3 million for the remaining 23 percent of the 528-unit tower at 50 Biscayne Blvd. The seller was Cousins Properties, a publicly traded Atlanta real estate company with the New York Stock Exchange ticker of CUZ.

The Related Group with Jorge Perez built the tower as part of a partnership with Cousins Properties. The Related Group and Perez are partners with the buyer, Lubert-Adler Partners, according to a statement from Cousins Properties.

The 50 Biscayne project is one of 85 condominium and/or townhouse projects to be developed in the Greater Downtown Miami area between 2003 and 2010, when the last tower is scheduled to be completed. Greater Downtown Miami is a 60-block stretch from the Rickenbacker Causeway north to the Julia Tuttle Causeway, Interstate 95 east to Biscayne Bay that encompasses the Brickell Avenue area, Downtown Miami, and the Biscayne Boulevard Corridor.

During this latest condo boom, developers constructed or are scheduled to build 22,737 new units pushing the total inventory in Greater Downtown Miami to 34,254 units, according to the Condo Vultures® Official Buyers Guide To Miami.

Greater Downtown Miami is projected to have 39 million square feet of gross sellable space, according to the Guide.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

New Housing Bill Will Help

Mon, 04 Aug 2008 01:47:19 GMT

The legislation devotes $300 billion to helping troubled homeowners avoid foreclosure. See if you qualify.

The Senate on Saturday passed a $300 billion housing rescue bill aimed at helping troubled homeowners avoid foreclosure and supporting mortgage giants Fannie Mae and Freddie Mac.

President Bush is likely to sign the bill into law within days. After the law kicks in on Oct. 1, thousands of at-risk borrowers will be able to refinance their unaffordable old mortgages into new low-cost fixed-rate loans insured by the Federal Housing Administration (FHA).

The Congressional Budget Office estimates that 400,000 borrowers with $68 billion in loans may benefit from the program - but the bill allows foras many as 1 million or 2 million borrowers to participate in the program.

Here's what homeowners need to know.

Who's eligible?

Qualified borrowers must live in their homes and have loans that were issued between January 2005 and June 2007. Additionally, they must be spending at least 31% of their gross monthly income on mortgage debt to be eligible for the program.

They can be up to date on their existing mortgage or in default, but either way borrowers must prove that they will not be able to keep paying their existing mortgage - and attest that they are not deliberately defaulting just to obtain lower payments.

Before homeowners can get FHA-backed mortgages, they must first retire any other debt on the home, such as a home equity loan or line of credit. Borrowers are not permitted to take out another home equity loan for at least five years, unless it's to pay for necessary upkeep on the home.

To get a new home equity loan, borrowers will need approval from the FHA, and total debt cannot exceed 95% of the home's appraised value at the time.

How can I apply?

Borrowers can contact their current mortgage servicer or go directly to an FHA-approved lender for help. These lenders can be found on the Web site of the Department of Housing and Urban Development.

How does the refinancing process work?

This is a voluntary program, so lenders holding the original mortgage have to agree to rework a given loan before things can get started. The bill requires lenders to make major concessions, writing down the value of the loan to 90% of the home's current value. In areas where prices have plummeted by as much as 20%, that will mean a substantial loss for the lender.

But lenders won't sign off on a workout unless they think that they'll lose less money on that than they would by allowing a home to go through the costly foreclosure process.

Each loan will have to be underwritten by an FHA lender on a case-by-case basis. That means the banks will do a new appraisal to determine the home's current value, as well as examine and verify income statements, bank accounts, job histories and credit scores.

Based on that new appraised home value, the FHA lender must determine how much the original lender has to reduce the original mortgage, so that it will reflect 90% of the home's market value.

If the original lender agrees to the writedown, the new lender buys the old loan and takes over the reworked mortgage.

As part of the deal, the old lender writes off any fees and penalties on the original mortgage, including prepayment penalties, and accepts the proceeds from the new loan on a paid-in-full basis. Additionally, it pays the FHA an up-front premium equal to 3% of the mortgage principal.

What does it cost?

There should be little up-front costs for borrowers to bear. Loan origination fees will vary by lender, but these can usually be paid by the borrower over the life of the loan in the form of a slightly higher interest rate.

However, the refinanced loans do come with many strings. For one thing, borrowers are responsible for paying an insurance premium to the FHA guaranteeing the loan, which will be 1.5% of the principal annually.

Borrowers also agree to share any profits from future home-price appreciation with the FHA. To do that, they'll pay a "3% exit fee" of the mortgage principal to the FHA when they resell or refinance.

Plus, they'll agree to pay the FHA 100% of any profits they realize from higher home prices if they sell or refinance within a year. So if the original loan principal is $200,000 and the home sells for $250,000, the borrower will owe the FHA $50,000, minus costs.

After a year, borrowers will share 90% of the profits with the FHA. The percentage keeps dropping in 10% increments to 50% after the fifth year, where it stays.

What will I save?

Savings depend on what borrowers are paying for their present loan and where they live, but for most people it will be substantial, even after factoring in the FHA fees.

In areas that have sustained huge price drops, such as Sacramento, Calif., where prices have fallen by about 30% over the past year, some loans might be reduced by more than 40%.

Additionally, the FHA loans carry reasonable interest rates, which are fixed for the life of the loan, as opposed to a subprime adjustable-rate mortgage that can jump higher every six months.

Florida Bank Shut As Regulators Continue Offensive

Sun, 03 Aug 2008 21:05:09 GMT

As Florida’s real estate market continues to plummet, banking regulators stayed on their offensive to clean up the industry by taking the extreme step of seizing a Florida-based institution.

First Priority Bank of Bradenton, a six branch institution with $261 million in assets located on the state’s west coast, was shutdown on the afternoon of Friday, Aug. 1, marking the first Florida institution to be closed by regulators in more than four years.

The last Florida bank to fail was Guaranty National Bank of Tallahassee with assets of $74.1 million on March 12, 2004.

First Priority Bank is the eighth bank to be closed in 2008, and the fourth since July 11. Local newspapers have identified two more Florida-based banks that have landed on regulatory watch lists.

Founded in December 2003 at the onset of the real estate bubble, First Priority Bank grew into an institution with 53 employees and with five locations in Bradenton, one in Sarasota, and one in Venice.

During the five year run, First Priority Bank reached $214 million in deposits and focused it lending strategy on commercial deals secured by Florida real estate, which is now freefalling in value.

As a result of the market downturn, First Priority’s noncurrent loans to loans spiked to 19.14 percent in March 2008 from 2.30 percent in March 2007. The bank’s real estate loans that were noncurrent jumped to 20.46 percent in March 2008 from 2.74 percent in March 2007, according to the Federal Deposit Insurance Corp.

The bank’s ratio of noncurrent construction and development loans skyrocketed to 24.89 percent in March 2008 from 2.15 percent in March 2007, according to the FDIC.

On the eve of the release of the First Priority’s second quarter results Florida Office of Financial Regulation seized the institution, and named the FDIC to be the receiver.

The FDIC in turn entered into an agreement to sell a large chunk of First Priority’s assets, liabilities, and all of Florida bank's branches to the Atlanta-based regional institution SunTrust Bank.

First Priority’s former branches are scheduled to open the morning of Monday, Aug. 4, as SunTrust Bank.

“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” according to an FDIC statement. “For the time being, however, customers of both banks should use their existing branches until SunTrust can fully integrate the deposit records of First Priority.”

According to the FDIC, First Priority had about $13 million in uninsured deposits held in about 840 accounts. The FDIC insures accounts up to $100,000.

To see a Florida bank fail shouldn't come as a shock to many. Investors have been closely watching the banking industry in Florida given the state’s rapidly deteriorating real estate market, which was a key lending focus for most institutions.

Deteriorating real estate markets on the West Coast of the United States has already prompted federal regulators to seize three banks in three state in the month of July.

Federal regulators shut down on July 25 two banks in three states with combined assets of $4.6 billion and 28 locations scattered around Arizona, California, and Nevada.

Regulators seized the First National Bank Holding Co. in Scottsdale, Ariz, the parent company of First Heritage Bank in Newport Beach, Calif., and the First National Bank of Nevada in Reno, Nev.

The First National Bank of Arizona merged with the First National Bank of Nevada on June 30, only to be shutdown 25 days later.The estimated cost of the failure of First National Bank of Nevada and First Heritage Bank is projected to be $862 million, according to the FDIC.

On July 11, federal regulators shut down IndyMac Bank, a $32 billion institution based in Pasadena, Calif. The estimate cost of that seizure is between $4 billion and $8 billion, according to the FDIC.

Before IndyMac, regulators seized Minnesota-based First Integrity Bank with $54.7 million in total assets and $50.3 million in total deposits on May 30; Arkansas-based ANB Financial with $2.1 billion in total assets and $1.8 billion in total deposits on May 9; Missouri-based Hume Bank with total assets of $18.7 million and total deposits of $13.6 million on March 7; and Missouri-based Douglas National Bank with $58.5 million in total assets and $53.8 million in total deposits on January 25, according to the FDIC.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

Skyscrapers of tomorrow: Dubai's rotating Condos

Fri, 01 Aug 2008 22:20:22 GMT

Check out the $3000 per sqft condos in Dubai where you can park the car on the same floor you live & 360 degree rotating views:

Dynamic Tower: The World's First Rotating Skyscraper - Click here for funny video clips

Views from the Omni Condo Residences in downtown Fort Worth, Texas

Thu, 31 Jul 2008 23:40:32 GMT

Omni Condo Residences in Fort Worth, Texas - First Views!!

July 31st, 2008 at 6:08 PM by Chris Faulkner

Another wonderful tour of another wonderful condo building going up in the booming downtown of Fort Worth!

What a pleasure it was to accompany Anna and Sarah with Omni Hotels all the way to the 24th, 25th and finally 29th floor to experience the views that many of us have been wondering about since we started watching the impressive Omni condo/hotel building race skyward.

Below you will find several images and an explanation of what you are seeing and where in the building I was standing.

Here we're obviously looking straight north towards downtown. This view is from the 24th floor A unit's living room. This unit has a 400 SF balcony to enjoy this view from!

This is again the 24th floor. The view is from the balcony of the B unit looking northeast. Another great view from another large balcony.

The C, F and G units have a great view to the East towards the water gardens. This picture was taken from the C unit's balcony on the 29th floor!

Perhaps the most recognizable feature of the Omni in Fort Worth are the unique pointed balconies on the south end of the building. This pictures shows you how wide-ranging the view is from this south balcony. You have enough space to enjoy the sunrise and sunset. Yes, the point views are as cool as they look from the ground.

This picture gives one a good idea of the scale of the units. This is the B unit's west facing wall.

I was very pleased to see that the Omni is living up to all of the hype. The building is beautiful, the view superb and the quality of construction outstanding. There are soo many more details to share. Please contact me if you have interest.

If you are considering purchasing a residence in the Omni or downtown, I hope you will consider allowing me to represent you.

Chris Faulkner
REALTOR
817-975-3300
chris.faulkner@cbdfw.com
www.highrises.com

Has The Real Estate Selloff Begun?

Thu, 31 Jul 2008 15:29:33 GMT

Hedge funds, private equity groups, and pension funds are actively seeking and beginning to purchase problem mortgages in bulk from investment banks and lenders that are desperate to clean up their portfolios, according to the Palm Beach Post.

For example, Lone Star Funds, a Dallas-based opportunity fund, has agreed to purchase a $30.6 billion mortgage portfolio for 22 cents on the dollar from the New York City investment bank Merrill Lynch & Co. The purchase price of $6.7 billion works out to a discount of $23.9 billion off the book value of the portfolio, according to the article.

As Lone Star Funds buys loan portfolios secured by various residential assets, many private equity groups, hedge funds, and institutional investors are searching Florida, California, Nevada, and Arizona for stumbling national and state banks that are willing to sell off loans on specific projects at deep discounts.

Banks are increasingly willing to deal in hopes of shoring up their balance sheets in hopes of avoiding repercussions from federal regulators that have shut down seven banks in 2008. Three banks located in the distressed real estate markets of California, Nevada, and Arizona were shut down by the Federal Deposit Insurance Corp. in the month of July.

No Florida bank has yet been seized although speculation is swirling that such an action could be coming given the plummeting real estate market in the Sunshine State.

Banking analysts have identified two Florida-based institutions that are the watch list of regulators. The two institutions combined by more than $1.2 billion in assets and 19 locations in Florida.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

GLOBAL REAL ESTATE MAGAZINE AND WORLD’S LARGEST CONDO MARKETPLACE JOIN FORCES

Thu, 31 Jul 2008 13:12:25 GMT

July XX, 2008 (Miami, FL) – Condo.com, the world’s largest condo marketplace, which currently has over 15 million visits a month, announced a partnership with Raices Magazine, a global magazine targeting real estate investors and professionals. This partnership provides both Condo.com and Raices customers with exclusive promotional opportunities and benefits as well as important industry information.

“Partnering with Raices magazine falls right in line with our desire to constantly make more services and resources available to our thriving Condo.com community of buyers, sellers and real estate professionals.” said Richard Swerdlow, CEO of Condo.com “We know our customers will benefit from the information provided in Raices and we are sure that Raices will appreciate the quality and volume of professionals joining our condo.com community daily,” he added.

While Condo.com uses the power of the internet to communicate its message to customers, RAICES uses a 4 color print magazine to reach its audience which currently includes over 100,000 readers worldwide. “Our typical reader is a CEO or top executive in the real estate industry including developers, investment groups, bankers, brokers and consultants in major cities in Europe, Asia Pacific and America. “ says creator Fabio Ostroviecki. “Condo.com is the most important alliance we have in North America. This partnership will fuel our intent to keep growing, provide cross functional tools to our customers and broaden our spectrum of reach. This is an exciting alliance for us and our readers and supports our goal of generating sales for our clients,” added Ostroviecki.

While many companies are struggling in today’s economy, especially in the real estate industry, Condo.com continues to experience rapid growth as the World’s Largest Condo Marketplace. Traffic to the site increased 23% in June, which generated more than 14,000 leads, over 3.4 million page views and over 97,000 visitor hours on the site.

About Condo.com

Condo.com is the most popular global internet portal for the condo real estate industry focusing on multi-family housing and the condo lifestyle. Condo.com has a comprehensive database that includes over 600,000 listings from multiple sources including developers and lending institutions that are traditionally not available to consumer markets. Registered Condo.com customers will get special discounted subscription rates to Raices Magazine among other special offers and exclusive events. For more information, visit www.condo.com or call 877.266.3601.

Kaimala Marina: Plentiful Choices in Hawaii Kai MarinaFront Townhomes

Wed, 30 Jul 2008 22:31:47 GMT

On Lunalilo Home Road, next to the Esplanade, Kaimala Marina is a development of 90 townhouses of many shapes and sizes: 1-bedroom/1-bath, 697 sq ft plus 285 sq ft lanai; 2-bedroom/2-bath units of 880 sq ft plus 620 sq ft lanai; 3-bedroom/2.5-bath of 1,281 to 1,323 sq ft plus 324 – 364 sq ft lanai; 3-bedroom/3-bath of 1,267 sq ft plus 803 sq ft lanai and 4-bedroom/3-bath of 1,555 sq ft plus 481 sq ft lanai.

Built in 1968, about 50% of these units are on the water and many of them have boat docks.

The amenities include pool and recreation deck, barbecue area, clubhouse and resident manager. Sales in 2007 ranged from $517,000 to $605,000, and through mid-2008, from $245,300 (leasehold one bedroom) to $580,000 fee simple 3-bedroom. Maintenance fees vary from $370 to more than $650.

For the investor or owner-occupant, Kaimala Marina in Hawaii Kai offers a lot of variety and price ranges. The location is convenient to Koko Marina Shopping Center, the library, Kaisuer High, and - of course - just a few blocks from Maunalua Bay.

Visit my Hawaii Kai real estate market analysis page on my web site for full details: http://www.movetohawaiikai.com/Hawaii_Kai_Market_News/page_1893904.html

The Honolulu Board of Realtors issues very complete statistics for monthly sales on Oahu. Contact me for a free copy.

Barbara Abe, Realtor for Hawaii Kai
barbara@barbarashawaii.com
808-226-2537

Report: Miami Bank Put On Watch List By Regulators

Wed, 30 Jul 2008 14:20:28 GMT

A Miami-based bank with six locations and $613 million in assets is on the watch list of federal regulators due to the institution’s deteriorating balance sheet, according to the Miami Herald.

Republic Federal Bank in Miami has been slapped with a formal reprimand by the Office of the Comptroller of the Currency. As part of the 24-page order, Republic Federal is to implement “a sweeping compliance program, covering much of the bank's programs and performance and demands the bank draw up a three-year strategic plan,” according to the article.

Under the order, Republic Federal must also “design steps to improve earnings, better its loan-portfolio management, establish periodic reviews of loans of doubtful payment or other problems, establish reserves for loan losses and accurately recognize foreclosed assets, among other issues. The bank agreed to a new capital plan and to only pay dividends when it had complied,” according to the article.

Republic Federal was created in 2007 as a result of the former Hemisphere National Bank in Miami purchasing local competitor Pinebank and adopting the current name.

Republic Federal has $438 million in deposits and employs 123 people at its six locations in Miami-Dade County, which includes the headquarters in the city of Doral, according to the Federal Deposit Insurance Corp., which insures deposits up to $100,000 per account.

Republic Federal reported a loss of $486,000 in the first quarter of 2008 ending March 31 compared to a profit of $467,000 a year earlier in March 2007, according to the FDIC.

The loss occurred as the bank’s problem loans spiked. Noncurrent loans and leases jumped 312 percent to $30.5 million in March 2008 from $7.4 million in March 2007, The bank’s ratio of noncurrent loans to overall loans jumped to 6.64 percent in March 2008 from 1.44 percent a year earlier in March 2007, according to the FDIC.

Financing related to construction and development or multifamily housing was the primary factor for the balance sheet problems.

Noncurrent construction and development loans surged to 35.5 percent in March 2008 compared to zero in 2007. Noncurrent multifamily real estate loans increased to 6.33 percent in March 2008 after reporting no problems a year earlier, according to the FDIC.

Investors are closely watching the banking industry in Florida given the state’s rapidly deteriorating real estate market, which was a key lending focus for most institutions.

Deteriorating real estate markets on the West Coast of the United States has prompted federal regulators to seize three banks in the month of July, and seven institutions so far this year.

Earlier this week on July 28, a veteran investment banker disclosed that Florida-based Peninsula Bank, which has seven South Florida locations and assets of $606 million, is also being closely monitored by banking regulators, according to the Sarasota Herald-Tribune.

Peninsula Bank in Englewood, Fla., on the state’s Gulf of Mexico coast is under regulatory scrutiny due to the instituion's noncurrent loans spiking 723 percent to $38.7 million on March 31, 2008 compared to $4.7 million in March 31, 2007. The bank’s noncurrent loans to total loans jumped to 8.99 percent in March 31, 2008, compared to 1.05 percent in March 31, 2007, according to the FDIC.

Noncurrent construction and development loans were a major factor in the bank’s rapidly deteriorating portfolio. Problem construction and development loans jumped from 1.19 percent on March 31, 2007, to 11.14 percent in March 31, 2008, according to the FDIC.

A Florida bank has not been seized since March 12, 2004, when regulators took over Guaranty National Bank of Tallahassee, which had assets of $74.1 million.

Out West, federal regulators shut down on July 25 two banks in three states with combined assets of $4.6 billion and 28 locations scattered around Arizona, California, and Nevada.

Regulators seized the First National Bank Holding Co. in Scottsdale, Ariz, the parent company of First Heritage Bank in Newport Beach, Calif., and the First National Bank of Nevada in Reno, Nev.The First National Bank of Arizona merged with the First National Bank of Nevada on June 30, only to be shutdown 25 days later.

The estimated cost of the failure of First National Bank of Nevada and First Heritage Bank is projected to be $862 million, according to the Federal Deposit Insurance Corp, which guarantees deposits up to $100,000 per account.

Earlier this month on July 11, federal regulators shut down IndyMac Bank, a $32 billion institution based in Pasadena, Calif. The estimate cost of that seizure is between $4 billion and $8 billion, according to the FDIC.

Before IndyMac, regulators seized Minnesota-based First Integrity Bank with $54.7 million in total assets and $50.3 million in total deposits on May 30; Arkansas-based ANB Financial with $2.1 billion in total assets and $1.8 billion in total deposits on May 9; Missouri-based Hume Bank with total assets of $18.7 million and total deposits of $13.6 million on March 7; and Missouri-based Douglas National Bank with $58.5 million in total assets and $53.8 million in total deposits on January 25, according to the FDIC.

Peter Zalewski is a principal with the consulting company Condo Vultures® LLC and a licensed real estate broker with Condo Vultures® Realty LLC. Peter can be reached at 305-865-5629 or by email at peter@condovultures.com. Be sure to check out Peter’s blog at CondoDump.com. Don't forget to sign up for our weekly Market Intelligence Report. Looking for a property at a deep discount? You are encouraged to take a peek at the Vultures Database™ .

Copyright © 2008, Condo Vultures® LLC

New Survey Confirms Foreign Investors Interest in New York Real Estate Market

Wed, 30 Jul 2008 02:53:29 GMT

Global economic uncertainty is rarely a good thing. For the US, though, it sometimes works in our favor. During times of uncertainty, investors rush for markets that they know, and everyone knows the US market.

Combined with the low cost of buying dollars these days, that global uncertainty is making the US market look more and more attractive to foreign investors.

Indeed, a number of high profile purchases lately have been perking up media attention. A sovereign wealth fund (SWF) controlled by the government of Abu Dhabi, for instance, recently purchased 90% of the Chrysler Tower, one of New York City’s most well known landmarks.

While SWFs from oil countries currently have more money than they know what to do with, the Chrysler building purchase is just the most visible sign of a developing trend.

An important group by the name of Association of Foreign Investors in Real Estate (AFIRE) recently surveyed its 200 members. Those members control more than $700 billion in cross-boarder real estate, so, like Will Ferrell’s character in “Anchorman” says, they’re a pretty big deal.

The major question the group investigated was where its members were focusing most of their investment currently. New York City was their top spot, followed closely by London.

The logic is fairly simple. Many markets now are experiencing turbulence that makes them hard to play right. One might as well simply aim for some big long term investments that, whatever the short term calamity does, will come out on top in the end. Such is most certainly the case with the top two spots on the list.

AFIRE’s number three and four follow a similar logic: Washington, D.C. and Paris. All four markets, but especially New York and London, are simply proven high return markets in the long run.

While inflation fears and worries about high interest rates may cramp the national market, it would take nothing short of a massive worldwide economic depression to eliminate the long term profitability of New York City’s real estate market.

It’s not going to happen, and the fact is that many of the world’s most important global investors continue to look to New York City as a safe haven that nonetheless shows very high long term returns.

Blog Post from: Elika New York City Real Estate Blog