Buyers Pages
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:
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There is only so much waterfront or Coastal property available.
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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.
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.
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.
Building a home
Buying a lot and building your dream home
may be the way to go. The cost of building will vary widely from
$50.00 per square to $300.00 and up.
Basically lots in Florida as far as price goes will run as follows.
Most expensive
• Open-water—Atlantic or Gulf
• Open-water Inter-Coastal or other Rivers-Lakes
• Canal Homes with Open water views (Bay or Atlantic-Gulf)
• Canal homes-Boatable and quick access to open-water
• Dry Lots—price varies widely, based on the community
and area.
*As to canal lots and how boat ability affects
prices.
If the depth of the canal and the width allows for a 50ft boat
or sailboat-it will be more expensive than a lot on a canal that
is shallow and usually not as wide. The bigger the boat, the more
room needed to turn around.
*Access to open water is another factor that influences prices.
If you’re only minutes (half hour) to good
fishing-diving, expect to pay more.
Also homes on shorter canals will generally have better water quality.
In the Keys we call these swimming canals. The tides flush them
out easier and the water is clear.
As of September 2005, per an MLS search,
Vacant lots-Location-Number available and starting
price.
• Key Largo, 89 starting at $30,000
• Marathon, 446, starting at $35,000
• Key West 20, starting at $275,000
For prices on the individual keys please contact me. The prices will vary depending on depth of boating etc—see information below.
Permit prices and restrictions will vary in each community. Generally the more environmentally sensitive the area is, the more restrictions there are in getting a permit. (Since the water is one of the main reason people want to be here, the state and the communities want to keep it that way.
Important:
Regarding pricing. The closer to the water and the deeper the boating,(boat draft-a 50 foot requires deeper water and wider canals than a flats boat) the higher the prices.
Another thing to do is find out what flood zone the property is in per FEMA maps and then talk to a local insurer on how that will affect your rates. Do this ahead of time.
#In all cases if you find a lot that you like, my suggestion is that you ask for a letter of build ability from the local zoning commission as a clause in your sales contract. Always-always, talk with the county yourself to get the update on the laws.
So, yes, you can build here and it’s done all the time, but make sure you ask all the necessary questions and if you can, get it in writing.
See the Biz directory for builders if that’s the way you want to go. If you want a new home contact a residential agent.
REGARDING BUILDING
Ask the REALTOR that you pick to help find you a good builder that will respond quickly. Another consideration is to buy a lot and build later (be careful here as building codes and laws can change due to density controls) I would first see how long it takes to get a building permit and then if you get one how long you can wait. In the Keys when you get a permit there is a limit of a couple years during which time you have to at least start the process (bring electric to the site-do a septic check etc)
Since all this varies widely make sure you get all the answers, Probably best to go the the permit department yourself and have a discussion
Monroe County permits
You will probably need a building permit if you
are:
• Building a new building or Adding to an existing building
• Renovating an existing building
• Demolishing an existing building
• Constructing a prefabricated structure
• Moving or installing a mobile home
• Installing/Modifying other miscelaneous structures
• including fences, pools, decks, fireplaces, etc.
You probably also need a permit if you are working
on your structure's:
• Electrical System
• Plumbing System
• Heating or Air Conditioning
• Ventilation Systems
State and or Municipal Licenses required
• Plumbing
• Electrical
• Asbestos Abatement
• Roofing
Building Departments
• MIDDLE KEYS OFFICE
• 2798 Overseas Highway
• Suite 300
• Marathon, FL 33050
• 305289-2501
• fax: 305 289-2515
•
• UPPER KEYS OFFICE:
• 88800 Overseas Highway
• Tavernier, FL 33070
• 305852-7100
• fax: 305 852-7103
•
• LOWER KEYS OFFICE:
• Juvenile Justice Building
• Room 2030
• 5503 College Rd.
• Key West, FL 33040
• 305295-3990
• fax305 295-3994
Florida Building Codes
The purpose of the Building Code is to protect the safety, health, and general welfare of the citizens through structural strength, stability, sanitation, adequate light and ventilation, and safety to life from hazards attributed to the built environment. This is accomplished through the implementation of building, plumbing, mechanical and electrical codes along with various state and local codes and standards
Information on Complaints Against Contractors:
Don't get nailed! Many citizens in Florida have fallen victim to
dishonest, unlicensed or improperly licensed contractors. Florida
Statute 489 requires all construction contractors to hold a valid
contractor's license prior to engaging in contracting. Always
require that a contractor show you a valid contracting license
before you sign a contract. Some indications that a contractor
may be unlicensed are: the contractor requests a large deposit
or all of the money up front before any work has commenced, the
contractor asks you to pull a "homeowner permit", the
contractor pressures you to sign a contract "today or I
can't give you this special price." To verify licensure
of a contractor, you may call the State of Florida Dep't of Professional
Regulation at 941 338-2373 or search their contractor licensing
database. The City requires proof of licensure from contractors
who pull permits for properties located in the City, so be sure
to require that the contractor pull the permit in his name, not
your name
So always play it safe and do it right. This will certainly help you in the Insurance area also---The extra structural costs for doing it better really pay off if a Storm hits and or you decide to sell
#The information above is based on my experience in the Florida keys, which is highly regulated due to environmental concerns. With regard to making any decisions, be sure to check with local and state permit and zoning authorities and/or a Real Estate attorney
Homestead exemption .
In Florida, $25,000 of the assessed value of your home is exempt
from real estate taxes, but you have to meet certain criteria to
be eligible for the exemption. First you much have the title or
record to your property as of January 1, and reside on the property.
You have to be a legal and permanent resident of Florida as of
January 1. When applying for the exemption status, bring along
a copy of your deed or tax bill, and a Florida county voters registration
or Declaration of Domicile. If you drive, you must also bring your
Florida driver's license and automobile registration. New applications
must be submitted in person at the appraiser's office, but renewals
may be done by mail. For further information, consult the County
Property Appraiser's Office.
Real Estate Taxes
All residents are subject to county taxes, but each city
or special district levies taxes within its boundaries. City, special-district,
and county taxes are combined in one tax bill. Real estate taxes
are assessed as of January 1 each year. They are due and payable
on November 1 and become delinquent if not paid before April 1
of the following year. Florida law holds the taxpayer responsible
for receiving and paying tax bills in full. For additional information
contact the County Property Appraiser's Office.
Establishing Residency
To establish residency, you may register to vote or file
a Declaration of Domicile, which is an affidavit available at the
CountyCourthouse. Filing one copy with the Circuit Court provides
a record of your intention to make Florida your home. Simply moving
to the State does not guarantee legal residency. For more information
contact the County's Clerk of Circuit Court.
What is Homestead Exemption?
Florida Law entitles every person, who has legal or equitable
title to real estate and maintains it as his/her permanent residence,
to apply for a $25,000 homestead property tax exemption. A partial
exemption may apply if the ownership of the applicant is less than
100%.
Am I eligible to file?
You must meet the following requirements as of January
1st:
Have legal or beneficial title to the property, recorded in the
Official Records of County
Residency on the property
Be a permanent resident of the State of Florida
Be a United States citizen or possess a Permanent Residence Card
(green card)
When do I file?
The deadline to file an application for exemption is March
1st. Under Florida law, failure to file for any exemption by March
1st constitutes a waiver of the exemption privilege for the year.
Regular filing is January 2nd - March 1st.
Pre-filing for the coming year is March 2nd - December 31st.
How do I file?
Take copies of the required documentation to your Exemption
Department:Generally at the County or City Court House
Home inspections and what they should cover
- Siding: Look for dents or buckling
- Foundations: Look for cracks or water seepage
- Exterior Brick: Look for cracked bricks or mortar pulling away from bricks
- Insulation: Look for condition, adequate rating for climate (the higher the R value, the more effective the insulation is)
- Doors and Windows: Look for loose or tight fits, condition of locks, condition of weatherstripping
- Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts
- Ceilings, walls, and moldings. Look for loose pieces, dry wall that is pulling away.
- Porch/Deck: Loose railings or step, rot
- Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room.
- Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation
- Water Heater: Look for age, size adequate for house, speed of recovery, energy rating.
- Furnace/Air Conditioning: Look for age, energy rating. Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs. However, other factors such as payback period and other operating costs, such as electricity to operate motors.
- Garage: Look for exterior in good repair; condition of floor—cracks, stains, etc.; condition of door mechanism.
- Basement: Look for water leakage, musty smell.
- Attic: Look for adequate ventilation, water leaks from roof.
- Septic Tanks (if applicable): Adequate absorption field capacity for the percolation rate in your area and the size of your family.
- Driveways/Sidewalks: Look for cracks,
heaving pavement, crumbling near edges, stains.
Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2003. All rights reserved