Best Times to Buy Real Estate

Conventional wisdom says that you need to stay in a home a minimum of five years to ensure that you recoup your purchasing costs. But with some markets soaring, this advice doesn't always apply.

It's All About the Market

Market conditions play a huge part in any decision about when to buy. Housing market values have varied widely from region to region in recent years. While the Florida market has seen meteoric rises in home values, Ohio has seen its real estate prices go into negative territory in the last year.

Do not buy high and sell low - if your market is softening or has hit its peak and is heading south, you may want to wait on your purchase.

The magazine Smart Money has created a worksheet to compare the costs of renting vs. buying using market appreciation calculations to determine at what point you come out ahead. Plugging in the price, down payment, your income bracket, interest rate, and current market appreciation rates, the worksheet will break out what you will gain.

It's All About You

The top three reasons people file for bankruptcy are change of job status, divorce, and unforeseen health expenses. If you face any of these challenges and don't have a financial cushion, this may negatively impact your ability to pay a mortgage. Big life events dictate your readiness to buy now or to wait for a little more stability.

Signs you should not buy right now:

* Will you be moving within the next five years?

* Will you be having kids soon?

* Will you be making a job change?

* Have you recently filed for bankruptcy or is your credit score below 630?

If you answered yes to any of these questions, or you are experiencing other life-changing events like illness, marriage, divorce, or breakup, you may want to wait.

What to Do First

If you are anxious to get moving, be patient. You have a few things to do first. Go to open houses - get the lay of the land.

Talk to a mortgage broker to get pre-approved

Interview agents (You may want to find an agent at the same time as you look for a mortgage broker - a good agent can recommend reputable brokers and help you make sense of the terms of the loan)

Review credit report and scores with mortgage broker to determine if any repairs are needed

Find info on neighborhoods that interest you

Click here to view and read the entire Best Times to Buy Real Estate article.

Bahamian Buyers may miss Real Estate Opportunities

A Bahamas Real Estate developer has warned that Bahamian buyers "may miss" an opportunity to acquire affordable gated community properties in western New Providence through lack of confidence, with prices in the area only likely to go up.

Speaking as he unveiled a $269,000, two-bed, two-bath condo product targeted at the Bahamian 'young professionals' market, Jason Kinsale, principal of The Balmoral project on Sandford Drive, told Tribune Business that his 'typical buyer' had altered from one who put down a 10 per cent deposit with mortgage financing to 'all cash' purchasers as a result of the recession.

"They're not scared. They know it's a good price and feel more confident," Mr Kinsale said of all-cash purchasers and foreign buyers, Canadians accounting for 50 per cent of The Balmoral's real estate sales over the last six months.

"I know this may sound self-serving," he added, "and that '10 per cent down buyer' may be afraid they will lose their jobs, and are gripped by fear, but a year from now they may not be able to afford to get into The Balmoral, Sandyport or a community of their choice.

"They have to take a little bit of a risk. I think our Bahamian buyers have to take a little more risk, or they will get left behind. They may miss.

"I think we've all come to the conclusion that prices in western New Providence are not going down. A modest increase of 2-3 per cent, and that's another $10,000 that they've got to find. That's the reality of the environment we're in.

"We don't have this infinite supply of product. Sandyport is close to being sold out, Nautica is sold out. There's not this endless supply of product out there." Mr Kinsale said many people were "underestimating the size of the Baha Mar project and not realising the impact this will have on western communities".

Recalling a recent visit to Toronto, where Chinese was the second most-spoken language, Mr Kinsale said that if just 100 Chinese acquired real estate options at the $2.6 billion Baha Mar project - a possible development, given the involvement of China State Construction and the China Import-Export Bank - this would have a major impact on the Bahamas real estate market.

Mr Kinsale said his Toronto trip had "opened his eyes" when it came to providing more affordable real estate options, noting that the Canadian city's most popular offering was currently a 400 square foot micro-condo.

Noting that having a diversified range of real estate products had helped to "save us" at The Balmoral during the recession, the developers now adding two more options to bring the total to seven, Mr Kinsale said he planned to apply Toronto's lessons to the Bahamas - albeit with product right for this market.

Revealing that the 18-unit $269,000 condo option will launch within the next 30 days, Mr Kinsale said: "I think they're going to fly. I think the young professional market has no choices here.

"It's for the investor as well, because the units will rent for approximately $2,200 a month. It's a nice investment package, because there's nothing available at that price in the west.

"I think there's a pent-up demand. Young professionals are just unable to purchase anything right now. If you look at young professionals they're doctors, lawyers, accountants, but they're not always making a lot of money. They have valuable training and education, but are not at the peak of their career yet; it takes a little while to get there."

While the commercial banks had come under fire for being unwilling to lend, Mr Kinsale said credit was still available to those who could qualify.

"I equate that to when I go into John Bull. I know which watch counter I can afford to go to, and which one I can't afford to go to," he added. "People were previously trying to buy stuff they just couldn't afford. Banks are lending; they just want good loans."

In the current economic environment, Mr Kinsale told Tribune Business that rather than the previous '4 P's', real estate marketers now needed to be equipped with five.

Previously, Product, Price, Place and Promotion were the main ingredients. "But with this economy you need to have a fifth 'P', Perseverance. Four are just not enough," Mr Kinsale added.

Palm Cay a Multi-million dollar Bahamas Development eyes 100 full-time jobs

AN EASTERN New Providence Island real estate development could create more than 100 full-time jobs when completed, its newly-appointed chief executive telling Tribune Business he was "very confident" that the 350-400 unit project would be sold out within the next four years.

Richard Browning said Palm Cay's UK-based investors had "committed to continue to invest" to make the project a success, having spent "just shy of $40 million to get us where we are" - a position that is now allowing the Palm Cay development to start marketing to Bahamas based buyers in earnest.

Palm Cay wanted to first build "a local community" from among the Bahamian professional and middle class market, Mr Browning said 50 lots in the Ocean front development had already been sold. In addition, six townhouses and five oceanfront homes were also fully built, the former now all occupied.

"We've done that without even being in the market, so what can we do if we get out there?" Mr Browning asked, telling Tribune Business that marketing efforts in the Bahamas were set to begin in earnest in November 2011.

Although Palm Cay was making the transition from construction site to sales and marketing, its chief executive told Tribune Business that some 200-300 construction workers, and eight Bahamian contractors, were still employed on site. The tennis court amenities were currently under construction, and Palm Cay had just hired nine Bahamians for its security team and a landscaping company with 20 workers, was also at the development site on a full-time basis.

"Those numbers will increase as security becomes more important, as landscaping becomes more important," Mr Browning said. Looking towards the full-time posts that would be created when Pam Cay's marina, restaurant and clubhouse become fully operational, he added that the latter two facilities might create "maybe another 50 jobs".

As for the marina, it would need a harbourmaster, employees to look after the boats and maintain the facility. The marina, in turn, could create opportunities for bait and tackle and yacht chandlery businesses.

"If the need is there, it will create some businesses off that, so there will be spin-offs," Mr Browning told Tribune Business. "There will be repair work on the boats. If you get your foundation right, you can build some really strong activities around it, and the wheel will keep on rolling.

"We could end up with 100 people just trying to maintain the development and provide the services."

With Palm Cay's club house and restaurant, and associated 194-slip marina, built and set to act as the project's "heart", Mr Browning said the latter facility would have fuel in six-eight weeks and be a 'full service marina' by year-end. The Palm Cay development had "infrastructure 100 per cent", with water, sewerage and electricity facilities all in the ground.

And Palm Cay was also looking for a Bahamas-based restaurant entrepreneur to run the clubhouse restaurant, the developers targeting year-end or early in the 2012 New Year to have this facility fully operational.

"I'm looking at the moment for a restaurateur," Mr Browning told Tribune Business. "We'd like to find a restaurant entrepreneur who sees this as a long-term opportunity.

"There's no critical mass to start with, but we'd like to open at the weekend to serve residents and visitors As Palm Cay opens, it will become a vibrant hub....... I've had a few people give me proposals, but made no decision. We're still looking." Reiterating that Pam Cay was looking for "the right person", and was very close to selecting a harbourmaster to run its marina, Mr Browning added: "We'd [the developers] be foolish to open it ourselves, not offering the right sort of amenities.

"The restaurant business is a specialist business. Ideally, we'd like to find someone here that can run it as a satellite and expand as needs demand." Emphasising that he was "selling a lifestyle", namely the boating/yachting experiences offered by the Bahamas and associated living, Mr Browning said Palm Cay would do this at price points between $500,000-$2 million, making properties affordable to middle class and professional Bahamian buyers.'

"We're not in the Albany game, but are still there between $500,000 and $2 million in current values," Mr Browning said. "We're going to market strongly to increase our visibility, but are not going to increase prices. We know the market situation.

"We've got a fantastic lifestyle product, and it's not out of reach of the ordinary person. We're not a mega boat marina, we're not for mega yachts. We're here for the person who wants a 40-foot fishing boat, a 20 foot cruiser, or a small boat for the family. It's a family lifestyle, and we provide a great opportunity for people to explore yachting, fishing. We're a great location for exploring the Family Island, with Exuma 40 minutes away."

Townhouses in Palm Cay will start at a $500,000 price point, going up to $850,000 for oceanfront townhouses. While offering turnkey construction, Mr Browning estimated that total construction costs - lot purchase together with building prices - could run up to $2 million.

The Pam Cay chief executive said the developers were also looking to reduce development density, hence the potential plan to reduce the project from 400 home sites to 350.

As a result, they were looking to "change the mix slightly to introduce a cottage-type product", built on 2,000 square feet of land, as a family home option. With the townhouses "a fantastic product for young professionals", Mr Browning said Palm Cay was also exploring a rental market offering.

"Our target for build out is four years to sell it out and build out," he told Tribune Business. "The developers have invested just shy of $40 million to get us where we are. They are committed to continue to invest to make this a success.

"They've invested in me, provided the resources for me to take this forward. It's a significant sign that the investors are serious about this by putting me on the ground, and the resources on the ground, to move this forward. We are moving forward even in this difficult economy."

Palm Cay had been about to ramp up its sales/marketing effort back in 2007-2008, just as the 'credit crunch' and recession hit in full. The UK-based developers were forced to take stock and adjust their plans, before settling on the current way forward.

Asked why Palm Cay had decided to move now, with local marketing set to start next month, Mr Browning said: "There are good opportunities here, and we can deliver.... In a market that is sluggish, you either stagnate or get up and shout. "We feel there are a lot of discerning property owners out there that see it as the time to invest, and we offer the product they're looking for. It's a bold move, but if you don't move you don't get the results. Over the next four years I'm very confident we will sell this out."

If Palm Cay proceeded well, Mr Browning said the developers would look to do more projects in the Bahamas.

"Once we've got this successful, we will look at other opportunities in the Bahamas," he told Tribune Business. "We're here for the long. We're not a 'quick in and out' developer, and this will probably be one of our developments in the future. It's a good flagship, and the next one becomes easier if there's a track record."

Mr Browning told Tribune Business the developers wanted Palm Cay to be a 'Lights on' community, rather than one populated solely by winter residents and second home owners, something that would leave it relatively empty for large portions of the calendar year.

As a result, Palm Cay was looking for a 60/40 mix tilted in favour of full-time, Bahamas-based residents.

Meanwhile, Mr Browning said of Palm Cay's international marketing plans: "We'll look to that once we feel we've got the life, soul and heart ticking in here with the local marketplace.

"We will only go out to the international community with something that works. We will probably go out to them in the middle of next year, although we will have a small presence at the Fort Lauderdale International Boat Show. There is a market there for people visiting the Bahamas, and we hope they will come down here on a regular basis."

Sandwiched between Port New Providence to the east and Gerardo Capo's Treasure Cove to the west, Mr Browning described Palm Cay as "the best kept secret" in eastern New Providence. As the only development of its size in the eastern end of the island, especially one that offers a marina and boating access, Palm Cay has some exclusivity to help its sales effort, especially given the rush to western New Providence.

To Handle Low-ball Offer, Minimize Emotion

It's a common scenario in today's real estate market: Sellers have their eyes on getting a certain amount for their home. Buyers make a low-ball offer that insults and offends the sellers and they refuse to even consider it. No sale.

How do you, as a seller, turn such a situation around in your favor to achieve a successful sale closer to your asking price? Your motivation plays a major role in your response, says Julie McCoy, a real estate agent with RE/MAX Accord in Lafayette, California.

If you want to sell a home quickly and a buyer is offering less but can close quickly, it's worth considering, McCoy says. When lower-than-expected offers come in, ask for an explanation from the buyer's agent and compare home sales to see how things stack up.

"The emotion has to be removed from the transactions," McCoy says. "Regardless of what kind of offers you receive, you can't take it personally. When someone writes a low-ball offer, it's not an indication of what your house is worth - but rather what they can afford."

Try to find wiggle room by negotiating the terms, such as the moving timeline, closing costs and repairs. You can gain back some money that way, McCoy says. If you're reluctant to touch the price but you're not having a lot of showings, seriously consider your motivations.

"When a seller says no to low offers, that means he or she will be carrying more payments on the house for a longer period of time," McCoy says. "If a seller can afford the daily cost of staying in the home and wants to get the best bang for the buck at closing, then there's not an urgent need to move. "

If you leave your gut reaction out of the equation, it's easier to make an informed decision on whether or not to consider a low offer.

"Motivated sellers will work with their agent, who then works with the buyer's agent, to negotiate - even if that involves countering," McCoy says. "It takes teamwork to arrive at a conclusion that everyone's happy with."