Lifestyle

Category: Property management

  • The Property Management by Viac Luxury Real Estate

    The Property Management by Viac Luxury Real Estate

    Whether you are:

    1. Already a property owner in the US and need a reliable property manager
    2. Looking to buy a property and do short term rental with Airbnb, Vrbo, Booking.com and many more. But you need someone onsite to take care of your investment

    Call the Viac Team 305 713 2414.
    Hire the best Property Management company in the US.

    We specialized in Efficient Property Management!

    Make sure to do the right choice and to get the best advisors. The law and regulations about short term rentals keep evolving and you may risk a $20,000 fine!

    Condos in Miami Beach and Miami are strictly regulated and enforced but no worries our expert team is aware of all the laws and regulations. We will guide you to the right investments.

    Furthermore, if you have already purchased a property and want to make sure that it is in compliance with all rules and regulations, please feel free to contact us and we will be happy to assist you.

    At Viac Luxury Real Estate we specialize in Property Management and Compliance Management to make sure your investment is secure and generates the best ROI. Or expert team is working 7/7 to assure the best guests experience as possible. And our 5-star ratings is the perfect illustration!

    We take care from the maintenance of your property to the check-in and check-out with our dedicated team and our very throughout in-house cleaning company.

  • Why Miami Real Estate investment

    Why Miami Real Estate investment

    Miami Real Estate Investment

    More and more people are turning to rental properties in Miami as a way to diversify their investments and generate steady cash flow in the future. And why not? There are serious benefits of investing in Miami real estate. First, however, it’s important to understand the key advantages of investing in properties in the first place.

    Miami Real Estate Investment – Why Rental Properties?

    There are several factors driving the trend in investing in rental properties and condos in Miami.

    • Many people are not reaping the benefits they thought they would from Certificates of Deposit and other savings accounts.
    • Despite we are not financial advisors low-interest rates have made people cautious of inflation in the future, pushing them away from the bond market. They turn to commodities like real estate which protect them from inflation.
    • People are diversifying their investments.
    • Low-interest rates and condo prices create interest in rental property investing.
    • Miami Real Estate appreciation.

    Now that you understand why so many people are turning to Miami real estate investments, you need to know whether a potential property is worth the investment.

    When determining whether or not a home or condo for sale in Miami is worth investing in, keep in mind these two key formulas:

    Miami Real Estate Investment – The Cap Rate

    The first formula involves calculating the cap rate. If you bought the house in cash, this is the rate of return you would make.

    What is the Cap Rate?

    The cap rate, also known as capitalization rate, is net income divided by current market value.

    Here’s an example:

    • Cost of condo or home = $200,000
    • You rent it out for $1,500/month
    • Average monthly expenses = $500 You spend an average $500/month on expenses (taxes, repairs, maintenance, etc.)
    • Net operating income = $1,000/month, or $12,000/year
    • Cap rate = $12,000/$200,000 = .06 or 6 percent

    Whether or not the 6 percent is worth the investment is up to you to decide. If you find a property in a Miami neighborhood with high-quality tenants, then it might be worth it. On the other hand, if the property is in a not-so-good neighborhood, then 6 percent may not be a great return on your investment.

    Miami Real Estate Investment – The One Percent Rule

    When evaluating a rental property in Miami, the general rule of thumb to go by is this: If the gross monthly rent equals at least one percent of the purchase price, you should look further into the property investment. If not, keep searching for better options.

    Here’s an example:

    If you purchase a condo for $200,000, it would need to rent for $2,000/month. If not, the one percent rule has not been met.

    According to the one percent rule, the property should bring in gross revenue of 12 percent of the purchase price each year. After expenses, the net revenue should equal between 6 and 8 percent of purchase price.

    In general, this is a good return on investment. However, it is important to take into consideration the neighborhood you are investing in. If the property is in a nicer neighborhood, there is likely a lower return; similarly, more questionable neighborhoods often have higher returns.

    Don’t Forget This One Last Thing

    Finally, no matter what percent you are gaining in ROI off of your Miami property investment means very little if the interest is not compounding. Well, what is compound interest?

     

    How does compound interest work and what does it mean for property investment?

    Compound interest is interest that is generated by your principal plus its interest.

    For example, if you invest $100 in the stock market, at the end of the year it will have gained $10 in interest, to equal $110 total.

    At the end of the second year, the interest has grown by another $11, for a total of $121.

    In summary, the extra $1 the second year earned represents the interest that compounded on top of your interest. Each year, the interest will compound on top of the previous interest, which becomes very powerful after 10, 20, 30 years. In order to reap the same of compound interest on your Miami Real Estate investment, you should reinvest the all of the proceeds so that your returns will compound upon themselves.

     

    SOURCE

  • Miami’s Lowest Property Tax Rates Reviewed for Income Properties

    Miami’s Lowest Property Tax Rates Reviewed for Income Properties

    Greetings Real Estate Investors,

    The Miami Herald recently published an article detailing the different property tax rates in Miami-Dade county for various municipalities.  Since it is tax season and that horrible three letter word is on all of our minds we decided to look a little more closely the list.  Specifically we are going to detail the 10 municipalities with the lowest 10 rates and give our opinion in terms of whether or not these areas offer other strengths or weaknesses for purchasing your next real estate investment.

    Here is the image from the Miami Herald’s article, they had more but we are looking at the lowest 10.

    Miami-real-estate
    We will start at the top of the list and work our way down…

    Sunny Isles Beach
    This is a no brainier and an no-go on investment, this luxury enclave of million dollar condos is where you want to live not where you want to invest, the high cost to purchase and the astronomical Condo fees mean that it doesn’t matter how low the property taxes are your bottom line will get massacred!

    Cutler Bay
    The little town that was formerly known as Cutler Ridge has come a long way since it was just a few homes on the way to Homestead.  There are several condo communities that were built within that last decade that provide a lot of bank for your buck.  We would definitely advise taking a look down the road at this community, the low tax rates combine with a low cost of entry to make this a very attractive place to invest.  There is one thing you have to be very aware of, there is a part of the community that is close enough to the giant Miami-Dade County trash mountain that there is a noticeable stench on some days.  This has kept property values low, so you can get a great deal but you also may have trouble finding good tenants who will stay for long.

    Miami Lakes
    You definitely would not want to invest in a single-family home here but there are several condo communities that are very good deals.  The community itself is very much tailored to working families so in general it tends to attract very good stable tenants.  The prices are definitely higher than Cutler Bay but you are getting what you pay for in terms of a very nice and community that also draws commuters because of its proximity to the Palmetto Expressway.

    Palmetto Bay
    Same as Cutler Bay but 10 minutes further north.

    Pinecrest
    Not much to say it’s too expensive to invest.

    Unincorporated County
    This is probably our number one pick on the list because it comprises so many options that are so much more central the work centers and Downtown than Cutler Bay, Palmetto Bay and Miami Lakes.  The only one that comes close is Doral, but as you will see when we discuss it next the cost of entry is much higher.  The unincorporated county comprises areas such as Shenandoah, Westchester, and basically everything West of US1 starting at 57th Avenue.  You can find some great Single-Family homes in these areas that have sturdy construction and access to some of the best spots in the rest of the city.

    Doral
    This is our number two pick, but if you prefer that your portfolio be filled with newer construction then this might be the first place that you want to look for your next investment property.  Most of the properties are townhomes and most were built within the last two decades.  What you need to watch out for the the HOA fees because some communities are much higher than others.  But the low tax rate combines with some exceptional properties and excellent location to make Doral a place you should definitely look into.

    Aventura
    We used to be higher on this city but recently there has been so much development that it feels like the traffic makes it impossible to get around after 9am.  Still there is a definite draw for quality tenants who want to live in a semi-luxury community.  Cost of entry is high but the low tax rate can somewhat offset that, although Condo fees still remain high, so only look here if you really like the mall!

    Bal Harbour
    Pretty much the same story as the Key but there are some condo buildings that are a bit older that can provide a more manageable amount of cash out of pocket.  The area is growing as well with revitalization happening in the famed Bal Harbour shops and the surrounding areas.  Again you should vacation here but probably not invest.

    Key Biscayne
    It is surprising that such an expensive community would have the lowest tax rate in the county but we might guess a reason…good lawyers?  But there isn’t much else to say, while this may be a great place to buy your next vacation property, the high cost of entry means you should probably avoid investing here unless you have very deep pockets!

    We hope that gives you some insight into where you make your next purchase…start in Unincorporated Miami-Dade county if you are looking for Single-Family and start in Doral if you are looking for new construction townhomes.  If you want to have low cost of entry look down the road in Cutler Bay and Palmetto Bay.

    SOURCE

  • Should You Invest In South Florida Real Estate?

    Should You Invest In South Florida Real Estate?

    Quick Hits: If you’re planning to buy a home, do it now, because prices are going up for the next few years. Investments in single-family rental properties have good potential in Broward County. Apartment developments have the best potential in Miami-Dade. Mortgages have higher risk even though prices are rising. Best bets for investments in retail or restaurants are in Palm Beach County, which also needs medical office space.

    With a large number of second homes and condos, South Florida is prone to boom and bust cycles that stem more from investment hopes than housing needs. Add an expanding Latino population and waves of baby-boomers – two million retiring every year – and you get both risks and opportunities. Demand for Florida housing is always growing, but is it growing slower or faster than the supply?

    The percentage of second homes increases as you head north from Miami, to 20 percent in Palm Beach County. This large pool of empty properties is the swing vote in home prices. It can swamp supply during a downturn but also represents the desire of future retirees – and South American investors – to buy while they can.

    The economy of Miami itself is diversified – with an important finance sector – but as you go up the coast more jobs are in retail and services. Healthcare is the largest creator of jobs in all three counties, and growing rapidly.

    Home prices were strong in the last three years – up 40 percent – and I expect they’ll keep rising 10 percent a year. But… How much of that 40 percent was from speculation in foreclosed condos? How much from ‘real’ demand? There are strong reasons to believe that from here on we are looking at prices going higher than they ‘should’ – especially in Broward County – in other words a mini-boom that will fizzle after a few years. If you’re looking to buy for the long-term, do it now. If you’re looking for a short-term investment, be very, very careful.

    Because rents held up better than home prices during the recession, buying a property to rent out is an attractive option despite the recent rise in prices, less so in Palm Beach County, more so in Miami-Dade and Broward. Almost half of households in Miami are renters. With most the new healthcare and retail jobs paying low wages, the renting population will increase. In urban areas it makes sense to buy a single-family house and split it into rental units. Apartment buildings are a good option in Miami – at the right price.

    Mortgages are a difficult investment right now. Because home prices will keep rising the next few years, the equity cushion for new mortgages will grow quickly; on the other hand, prices are almost too high in Broward and Miami-Dade already, which means these mortgages will have a rising risk of default. Just because the last bust is over doesn’t mean a new one isn’t around the corner. Lenders should back away from high loan-to-value mortgages during this period. The same is true for construction loans; new projects should be financed in very careful stages.

    Population is growing at an uneven pace, slower in Miami, faster as you move up the coast. Over the next three years I expect a 10 percent increase in housing needs in Palm Beach County – 30,000 owner properties and 23,000 apartments. I expect 25,000 of each in Broward, and in Miami 30,000 houses and 36,000 apartments.

    The climate for investments in retail businesses and restaurants is best in Palm Beach County, where demand has grown quickly the last two years and average income is the highest. All three counties, but especially Palm Beach will need office space for the growing number of healthcare workers.

     

    SOURCE

  • Buy a Second Investment Property: Why and When?

    Buy a Second Investment Property: Why and When?

    Owning an investment property is no easy feat. The general perception from the public is that how hard can it be to own and rent a property. Well it turns out its not that easy. Being the owner of an investment property comes with many risks, planning, hard work and ability to constantly evolve. Those who investment and taste the path of success in investment property become accustomed to that lifestyle and they start to see a path being carved for themselves. That path leads them to buy a second investment property.
    If you read through real estate blogs about investor’s experiences and what made them get into real estate investments then you would be surprised how much you would relate to that. Each person enters real estate for a different reason, whether it is financial stability, enthusiasm about the market or building a small empire. Investors who succeed with their first investment property start seeing the potential of the real estate market. Their natural reaction is well if I could be successful with my first attempt then my second attempt must be easier. What they see is the potential to make double or triple the money they aimed for before it all started. It is all about ambition in real estate.

    There are so many reasons why it is recommended to buy a second investment property if you have the means for it. Wanting to expand your horizons might be risky, but its one worth every ounce of risk involved in it. The purpose of the first investment venture was making money, so why would an investor back down when more money is being involved. More profit means a better reputation, creativity and hard work. This is why it is absolutely crucial for the investor to know the correct timing to buy a second investment property.

    The reasons involved that will determine whether your timing is correct to buy a second investment property or not is mostly personal but some are general.

    5 Reasons to Buy a Second Investment Property

    Testing the Waters

    Before even thinking to buy a second investment property it is important for you as investor to go through a year or two with your first one to see how it fares. When you enter a new investment which you lack experience in, it is normal to be hit with unexpected costs or be unaware of how the taxing system will work. The taxation of your property’s income will depend on how much you make which you are certainly not aware of. This is why it is advisable to wait for a short time before contemplating buying your second investment property.

    Mortgage Rates

    The most obvious reason for all investors whether they are first time investors or multiple investors is the very mortgage rate levels. It is just sensible to use the advantage of a stable economy and a mortgage rate that has descended to its lowest rate in ten years. If an investor who is looking to buy a second investment property thinks it is too risky because of expenses and mortgage rates for two properties. Well think again. The upside of owning two properties is that the mortgage rates basically pay themselves and pay off your property as well. Having the second property for rental generates more money that allows you to easily pay off interest for two properties and cover their expenses.

    Experienced Investor

    The best indicator of correct decisions and timings is your own personal experience. Before buying a second investment property and you ask yourself, how did I fare with the first property? If your property is meeting your needs, generating money and being rented then you have probably done a decent job. Experience makes the difference in these situations, and with that vital experience it will be easier to save money on the second property by avoiding some of the mistakes you did first time. The learning experience from the primary property you have owned will be invaluable.

    Managing Properties

    Being the landlord of one investment property is enough to cause a serious headache with all the requirements and hard work necessary to remain at the top. When there are tenants involved it all becomes harder for the landlord or investor because they have to meet the demands of tenants on a regular basis. This results in a loss of time, energy and willingness for the job, so imagine how much tougher it is when there are two properties involved. There are investors who have been able to manage these problems either by themselves or by using property management professionals. This proves that they are ready to take the next step in real estate investing.

    Understanding Gains and Expenses

    Making studies that combine the first property you own with the second property you’re considering in terms of expenses and profits is advisable for you to understand where it is heading. The key to know if it is time to buy a second investment property is expanding your financial goals. Not being satisfied with the financial gains from one property is the go ahead you need to start looking at other properties.

    In conclusion, to buy an investment property is a matter of understanding your personal willingness for it. Understanding the reasons mentioned above and evaluating each of them will of course make the decision easier to make based on more assessments and assurances. If your goal is to become a real estate big player that leads you to financial growth with every step then considering your second property is vital.

    SOURCE

  • Vacation Home or Income-Producing Investment?

    Vacation Home or Income-Producing Investment?

    The American Dream has undergone a fair amount of change over the last 50 years

    It has expanded to include being able to buy a second home — a vacation home. These are the cottages on the lakeside, the cabins in the mountains and the huts on the beach that all sit empty 90% of the year while their owners are banking time for the next vacation — and footing the bill for the mortgage and property taxes.

    There is, of course, an alternative to letting your cottage collect dust during the down time. You can rent it out to other people looking to enjoy some time away from work. This article will look at some of the issues that surround renting out a second home.

    Buying a Second Home

    Keeping a primary residence is an enormous financial decision. If you’re considering a second home, use a mortgage calculator to research interest rates from lenders in the area where your vacation property is located. Then, once you’ve gathered estimates of the total cost of your monthly mortgage payments, go over your financials to see if you may be better served to go with a mortgage or to pay cash.

    Here’s why. Keeping a second home is a step up in magnitude because a second home has all the costs (often more) of your first home without the easy write-offs from the IRS. Also, if you are set on getting a vacation home but don’t have the capital for an all-cash purchase, do not take a second mortgage on your home. The IRS has closed the loophole whereby a person could use a second mortgage to purchase a separate investment property while still deducting his or her mortgage from taxes. If you take a mortgage on your primary residence to buy a second home, you will not be allowed to deduct the payments as personal mortgage interest. Thus, if you intend to borrow for a second home, you will have to take out another mortgage that allows for tax-deductible interest.

    As It Stands

    Current tax rules surrounding second homes, vacation homes and investment-class second homes have changed more frequently than those of primary residences. As of 2010, if you currently own a second home for personal use, you are allowed to rent it, or your primary residence for that matter, to another party for up to two weeks (14 nights) without reporting any of the income. On the flip side, a second home is considered an investment property if you spend less than two weeks in it and then attempt to rent it the rest of the time. It is important to remember that, with the advent of resorts and such, the demand for a cabin in the woods may only come at the peak times – the same period you would probably want to use the property yourself. (To learn more about being a landlord, see Tax Deductions For Rental Property Owners, Investing In Real Estate and Tips For The Prospective Landlord.)

    The IRS on Vacation-Home Investment

    Although taxes for investment properties have been traditionally softer than for other types of investing, second homes seem to be a gray spot for the IRS. All rental losses are “passive losses” or “hobby losses”; and, these can only be used against — written-off against — income from other passive activities like other rentals, a private partnership you don’t help operate or an S-corporation. Passive losses that you can’t use are carried forward until you sell the vacation home. When you sell the property, the past losses can be used to offset any gains and, if you have more passive loss write-offs afterward, you can claim them against regular income.

    You can, however, deduct up to $25,000 a year, if:

    – Your adjusted gross income is less than $100,000 or
    – You actively participate in the management of the property.

    This tax break vanishes at $150,000 adjusted gross income (AGI). If you are between $100,000 and $150,000 you qualify for half the deduction. This seems foolish, as most of the people who can afford to buy a second home will have an AGI far above these numbers. Still, the real challenge is in the second condition. You can use the yearly deduction if you or your spouse want to become a qualified real estate professional and actively manage the property that is posting the passive losses. Be warned, however, the IRS is not likely to believe that you hold a full-time job and moonlight as a property manager. You will need a detailed journal on why, when, where and what you are doing as a property manager in order to prove your case.

    Selling a Vacation Home

    Properties in popular vacation areas usually tend to see higher-than-average appreciation, so there may be a time when you want to cash-in and find a new place to stay. When selling a vacation home, the length of time you have held it affects your capital gains tax. If you sell before a year has passed, you will be subject to the short-term capital gains rate. If you sell after a year, your federal tax will be calculated at the long-term capital gains rate. (To read more about capital gains tax, see A Long-Term Mindset Meets Dreaded Capital-Gains Tax, Capital Gains Tax Cuts For Middle-Income Investors and To Sell Or Not To Sell.)

    You can, however, do a bit of a dodge if you are willing to completely relocate. If you sell your primary residence with the $250,000 per person tax-free, and then move into the vacation home and declare it your new primary residence, you will be able to use the $250,000 ($500,000 for couples) exemption again – providing you live there for two years. Unfortunately, this strategy is often only practical for the self-employed or retired. There also other restrictions on the use of the capital gains exclusion for vacation homes that have been converted to a primary residence. (For more insight, see Is it true that you can sell your home and not pay capital gains tax?)

    Tips for the Second Homeowner

    If you own a second home for the purpose of renting it, and you have an AGI under $150,000, then get in there and start managing. This means that you won’t be able to use an agent to find tenants, and you will be arranging repairs personally, but it will give you passive losses to write off. Or, if active management doesn’t appeal to you or your AGI is too high, you can spend more time at the cabin and turn it into a mixed-use property rather than an investment property. This means that the taxes change with the change of designation – mainly that you can’t use passive losses, but you will be able to claim a percentage of the mortgage interest and property taxes as deductions against your income tax.

    The Bottom Line

    Turning a vacation property into a profitable rental tends to be an uphill battle. Before you jump into being a vacation-home landlord, take a good look at how your taxes will be affected. Most people who own second homes would be better served by getting them classified as a mixed-use property for tax purposes and renting them out for only the tax-free 14 nights in a given year. The people who do become second-home landlords, however, usually are driven by the same compulsion that forced them to buy the place in the first place. If you are one of those people, your best course of action is to get actively involved in managing your own property.

    What Do Other Investors Know That You Don’t?

    If it seems like you’re always late to the party when the market is swinging, it’s because other investors are beating you to the news. If you’re tired of making losing trades day after day and are looking for an edge then feel free to contact us and start your day better informed and ready to take on the markets.

    SOURCE