Eyesore of the Month

Does anybody have the number to the Karma Police?

I need them to, at the very least, question whoever is responsible for this immediately, if not sooner.

This is Barcelona Condominiums, a new 71-unit affordable housing project currently under construction at 2217 NW 7 St in Miami that promotes and offers the opportunity for homeownership instead of the usual for rent affordable housing. The acute lack of local affordable housing coupled with the Miami Herald’s well-documented abuses of those chosen to provide a solution to the problem, make affordable housing projects like these a welcome addition to the city.

I commend any developer willing to tackle the issue of affordable housing. However, is there a reason why affordable housing has to look so…well, affordable?

When will local leaders, planners, developers and the general populace realize that affordable housing and good design can co-exist? Low cost housing doesn’t have to mean low quality housing. Good design, especially in the affordable housing sector, should meet the users’ needs, enhance the neighborhood and should be built to last.

Although this building stands to offer a short-term solution to 71 families in need of affordable shelter, it fails to address the long-term needs of those very families and more importantly, the community as a whole. A quick look at the structure will tell you that it’s obsolete even before it has been completed. I can only wonder what it will look like 10 years from now.

An unmasqueraded parking garage fronting a building that fronts a major thoroughfare? Come on!

I’m no architect (although I did sleep at a Holiday Inn Express last night), but why not create a pedestrian friendly arcade or colonnade to provide the residents with some necessary refuge from the hot sun on those dreadful Miami summer days? Can we do something about the Pepto-Bismol pink that easily identifies the building from SR-836? Why the balconies in white?

Does anybody out there have any ideas as to what we can do to save the people who will eventually occupy this building?

By the way, take a look at the “sales pitch” below:

En español:

Now take a look at the following photo-op disguised as a “ground breaking ceremony”:

Does anything catch your attention?

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com.

The “R” Word

Sticks and stones may break my bones, but words will never hurt me.

If that still holds true, then why are so many people scared straight of the “R” word? I mean, it’s just an economic term, dude. No need to reach for the chewable tablets of Pepto-Bismol every time I mention it.

Repeat after me: “Recession, recession, recession”. Say it again now: “Recession, recession, recession”. Don’t hide from it. Embrace it. Use it as a term of endearment. If your mom tells you que “eso no se dice”, demand her to stop at mid-sentence. Tell her not to lie to you anymore. It’s bad enough that everyone else did. And we believed them.

You know what else? The same people that lied to us before continue to lie to us today. Do they expect us to believe them this time around?

Mortgage bailout? Another classic example of a Washington dog-n-pony show fueled by photo-ops meant to soothe the souls of the average American’s fears. Are we that naive to fall for the cosmetic PR when our country’s long-term needs are being compromised to cover up for Wall Street’s greed?

Must they continue to drag out this recession? Must they continue to destroy the credibility of the almighty dollar? This economic downturn is inevitable. Intervening, no matter how well-intentioned, only leads to increased injustice.

More than 95% of homeowners in the U.S. of A. are making payments on time. That’s 9.5 out of 10. I am one of them. What is my incentive for behaving honestly? Why should a responsible homeowner have to compete against a short seller receiving bailout benefits?

Why is the good guy being penalized, mom? Sh*t! First Santa Claus. Now this? Next you’re gonna tell me that there was a lunar eclipse last night. Es lo unico que falta.

It’s time to stop complaining about the recession, boys and girls. The “R” word is necessary. Well, maybe not absolutely necessary, but it’s not such a bad thing. It was only a matter of time before your neighbor, the substitute teacher at Lincoln Marti “que se saco el bombo y llego hace dos años”, got burned flipping 27 properties in a little bit over a year.

I’m not sad to see her go. It’s just Recession doing his thing. Sink or swim. Time to separate the men from the boys, the real from the fake.

In economics, recession is defined as a decline in a country’s gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. At street level, recession is simply a positive way to weed out the inefficiencies caused by the excesses of a bull market. It’s a way to get Realtors to insert the purchase price where the purchase price goes, instead of having an initial deposit that’s equal to the purchase price and a purchase price that’s equal to the initial deposit on a contract. It’s a way to get a buyer’s agent to follow up on his/her buyer’s contingencies without having to harass him/her via cell phone, office phone, email, text message, telegram, etc. It’s a way to get people to respect your time and show up to an appointment at the time that was agreed upon. It’s a way to generate business when everyone else is complaining about market conditions and you’re busy busting your arse.

Which leads me to you. Yes you. I don’t want to hear your sob story. Stop waiting for the very people who created this debacle to come save you. Stop being so miserable and pessimistic about everything. You hate that dead-end job? Quit! Go do something that you love and work hard at it. Maybe then you can make money while doing something you enjoy. What a concept.

Stop fighting this recession and ride the wave. At the very least, you’re guaranteed to become a much better surfer.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305.491.7179 or SalgadoA@gmail.com

2008 Homestead Exemption Update

I received word yesterday that a letter was recently mailed out to homeowners in Miami-Dade County who qualify for a 2008 Homestead Exemption. In the letter, the Miami-Dade Property Appraiser’s Office asks everyone who either filed or plans to file for a Homestead Exemption to also file a Portability Application Form (DR-501T) even if you don’t qualify for portability.

The letter explicitly states “if you do not want to apply for this benefit (portability), please write ‘none’ across the Transfer of Homestead Difference form, sign it, and return with your homestead application”.

In other words, if you do not benefit from portability in 2008, write the word ‘none” in big black bold letters across the Portability Application Form (DR-501T), sign it, and return it with the Homestead Exemption application.

If you already filed for a Homestead Exemption, you must do the same. However, if I were you, I’d put my 13-digit folio number somewhere on the Portability Application Form (there is a space provided on the application labeled “Parcel ID Number”) so that the Property Appraiser’s Office knows what property the form corresponds to.

If you did not apply or will not be applying for a Homestead Exemption in 2008, you do not have to do anything. Relax.

A copy of the aforementioned letter, dated February 15, 2008, can be seen here.

By the way, the last day to apply for a Homestead Exemption is March 3, 2008, not March 1, 2008 as stated in the letter.

Adrian Salgado is a Realtor Associate with RED I Realty and can be reached at 305-491-7179 or SalgadoA@gmail.com

Reminder: $50,000 Homestead Exemption Application

If you took legal or equitable title to real property in the state of Florida in 2007 and made it your primary residence as of January 1, 2008, don’t forget to file for a $25,000 $50,000 Homestead Exemption with your local Property Appraiser’s Office.

Property tax exemption applications, along with general instructions on how to complete the application are available online at the Miami-Dade County Property Appraiser’s Office Exemptions page. The active links above will direct you to the PDF files.

All property exemption applications may be filed with the Miami-Dade Property Appraiser’s Office anytime up to March 3, 2008.

Applications can be filed at both Property Appraiser’s office locations. Those locations will be open Monday – Friday from 9:00 am to 4:00 pm until March 3, 2008:

Stephen P Clark Center (Government Center)
111 NW 1 Street (Ground Floor Lobby)
Miami, FL 33128

South Dade Government Center Government Center
10710 SW 211 Street (2nd Floor)
Miami, FL 33189

In addition to these two locations, the Property Appraiser’s Office has set up special satellite offices across the county where they are receiving property tax exemption applications. The following offices will be open Monday – Friday from 9:00 am to 4:00 pm until February 22, 2008:

Miami-Dade Permitting & Inspection Center
11805 SW 26 Street (2nd Floor)
Miami, FL 33175

Hialeah District Court
11 East 6 Street
Miami, FL 33010

North Dade Justice Center
15555 Biscayne Blvd
Miami, FL 33160

NOTE: All offices will be closed on Monday, February 18 in observance of President’s Day.

If you qualify for portability in 2008, in addition to applying for a Homestead Exemption you must also submit a Portability Application Form (DR-501T) to the Property Appraiser’s Office by March 3, 2008.

If you have already applied for a 2008 Homestead Exemption on your new home, you must still complete the Portability Application Form by March 3, 2008 in order to benefit from portability.

Someone looking to transfer his/her Save Our Homes benefit from a previous homestead located in a different county, needs to fill out a Certificate for Transfer of Homestead Assessment Difference (DR-501R) with the Property Appraiser’s Office in the county in which the new homestead is located.

Properties with a Homestead Exemption will be automatically upgraded to the new $50,000 benefit. You do not need to apply for the second $25,000 Homestead Exemption.

For more information on property tax exemptions visit the Property Appraiser’s Office home page.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305.491.7179 or SalgadoA@gmail.com.

PortABILITY: The 4th Real Estate-Related Term of 2008

“Take what you can. Take what you can!”, I heard someone shout softly at my voting precinct, Iglesia Bautista de Renovacion (Baptist Church of Renovation for you English-speaking heathens), last Tuesday.

I guess.

By now, Amendment One is so last week’s news. Britney was released from UCLA Medical Center while “in the throes of a mental health crisis”, the Eli Manning-led NY Giants won the Super Bowl, Andy Petitte talked to the House (he tried HGH only twice – no for real, he was recovering from an injury) and Kazaam was handed a one-way ticket to the desert.

In the meantime, A Miami Real Estate Blog was busy at work adding a 4th real estate-related term to the 2008 list.

A MIAMI REAL ESTATE BLOG: Ladies and gentlemen, it is with great pleasure that I introduce to you…

[Drumroll.]

A MIAMI REAL ESTATE BLOG: Portability!

[The crowd rises to its feet.]

PORTABILITY: Thank you, thank you…thanks…too kind. Please, please…have a seat. [Pause.] I want to, first and foremost, thank YOU all for your support. Thanks for showing up in droves and making all of this possible.

[Deafening applause.]

PORTABILITY [after a short pause.]: I’d like to specially thank Governor Crist for indoctrinating his tireless efforts. Without him, there is no me.

CROWD [in unison]: Charlie, Charlie, Charlie, Charlie…

[GOVERNOR CRIST, tickled pink and seated to PORTABILITY'S right, stands and acknowledges the crowd.]

GOVERNOR CRIST [in a soft whisper meant to be lip read, not heard]: Thank you. Thank you.

PORTABILITY: Due to the exhaustion caused from the overwhelming support, I will not be answering any questions today. I have chosen a publicist, A MIAMI REAL ESTATE BLOG, to do the talking for me.

A MIAMI REAL ESTATE BLOG: Portability has been with us for about 9 days now. My apologies for not introducing him sooner. I felt that we needed to get to know each other a little bit better before I introduced him to the masses. As he mentioned seconds ago, he’s a little weary from the traveling and endless campaigning, so I’ll be doing most of the talking for him.

If you received a Homestead Exemption in 2007 on a Florida home that you sold or abandoned during 2007 and purchased a new home in Florida that served as your primary residence as of January 1, 2008, you are eligible to take some or all of the benefit (up to $500,000) of Save Our Homes (Amendment 10) to your new home. The Save Our Homes benefit is the difference between the Market Value and the Assessed Value of your (previous) homestead property.

Portablity Example

Let’s say that Danny Adejo owned a homestead property in an unincorporated area of Miami-Dade County in 2007 in which the following scenario applied:

2007 Market Value: $331,281
2007 Assessed Value: $178,848
- Homestead Exemption: $25,000
2007 Taxable Value: $153,848

2007 Millage Rate: $18.5679
2007 Property Tax Amount: $2,856.63

Save Our Homes Benefit: $152,433

(Please keep in mind that in order to simplify things, I am not including non-ad valorem assessements like garbage/trash removal, recycling, fire fees, etc. in the examples.)

Mr. Adejo purchased a new property in unincorporated Miami-Dade County in June 2007. The sale price of the new home was $385,900. Since Mr. Adejo occupied the home as his primary residence as of the assessment date (January 1, 2008), he qualifies for a Homestead Exemption. As a result of Amendment One’s enactment, he also qualifies for portability in 2008. His new scenario (assuming that the Miami-Dade Property Appraiser will assess the property at the same amount as the purchase price) is as follows:

2008 Market Value: $385,900
2008 Assessed Value: $385,900 – $152,433 (Save Our Homes Benefit) = $233,467
- Homestead Exemption: $25,000
- 2nd Homestead Exemption: $25,000
2008 Taxable Value (non-school district): $183,467
2008 Taxable Value (school district): $208,467

2008 Total Millage: $18.5679
2008 School Millage: $7.6078
2008 Non-school Millage: $10.9601

2008 Property Tax Amount: $2,010.82 + $1,585.98 = $3,596.80

(The 2007 millage rate was used for the 2008 example.)

Let’s take a look at Mr. Adejo’s scenario had Amendment One not passed last week:

2008 Market Value: $385,900
2008 Assessed Value: $385,900
- Homestead Exemption: $25,000
2008 Taxable Value: $360,900

2008 Millage Rate: $18.5679

2008 Property Tax Amount: $6,701.16

Wow! As a result of Amendment One’s portability opportunity, Mr. Adejo will save $3,104.36 in property taxes in 2008 in his new home.

Hold on. Before you pop the Veuve Cliquot in celebration,

let’s take the scenario one step further. Mr. Adejo did not sell his former homestead property in 2007. Instead, he decided to keep it as a non-homestead investment property.

Assuming that the Miami-Dade Property Appraiser’s Office makes no change to the market value of Mr. Adejo’s non-homestead property for the 2008 tax roll and that the 2008 millage rate remains the same as 2007’s, the scenario will look as follows:

2008 Market Value: $331,281
2008 Assessed Value: $331,281
2008 Taxable Value: $331,281

2008 Millage Rate: $18.5679

2008 Property Tax Amount: $6,151.19

Ouch! That’s a 215% increase in property taxes for the non-homestead property. Instead of saving $3,104.36 in property taxes in 2008, Mr Adejo is actually in the red $190.20:

$3,104.36 (taxes saved from portability in new homestead property)
- $3,294.56 (increase in taxes in non-homestead property)

Why did Mr. Adejo’s property taxes rise by astronomical proportions at his non-homestead property in 2008?

Well, for starters, Amendment One just didn’t go far enough in addressing property taxes for non-homestead second homes, investment properties, commercial properties, vacant land, etc. You can see that the tax burden in the preceding scenario (which, by the way, is a real one) was just shifted from one property to the other.

Yes, had Amendment One not passed, Mr. Adejo would be facing two stiff property tax bills instead of one.

Interlude: I don’t know about you, but $3,596.80 in property taxes doesn’t exactly sound like a bargain to me – portability or no portability.

That’s not the point, however. Mr. Adejo decided to keep his former homestead as an investment property and provide quality housing to a qualified tenant. The chances of Mr. Adejo breaking even, let alone having a positive cash flow in the non-homestead property due to the large property tax increase, is slim to none. The rising costs of property taxes, as well as property insurance, have literally washed away the rental economics of owning residential investment property in South Florida.

Mr. Adejo is forced to make a decision sooner rather than later. Continue to hold on to the property despite a negative cash flow in a “declining market” (it’s official) or attempt to sell the property in an already crowded real estate market.

Transferring Save Our Homes Benefit to Your New Home

If you qualify for portability in 2008, you must apply for a Homestead Exemption with the Property Appraiser’s Office by March 3, 2008. In addition, you must also submit a Portability Application Form (DR-501T) to the Property Appraiser’s Office by March 3, 2008.

If you have already applied for a Homestead Exemption on your new home, you must still complete the Portability Application Form by March 3, 2008 in order to benefit from portability.

Someone looking to transfer his/her Save Our Homes benefit from a previous homestead located in a different county, needs to fill out a Certificate for Transfer of Homestead Assessment Difference (DR-501R) with the Property Appraiser’s Office in the county in which the new homestead is located.

Additional $25,000 Homestead Exemption

All persons currently receiving a Homestead Exemption and who continue to live in the same (primary) residence will automatically qualify to receive the additional Homestead Exemption. You need not apply for the new Homestead Exemption.

10% Assessment Limitation on Non-homestead Property

2008 will serve as the base year (first year) for the 10% limitation on the assessed value of a non-homestead property. Owners of property subject to the 10% assessment limitation will need to apply with the Property Appraiser’s Office on or before March 1 of each year beginning in 2009. As it currently stands, the 10% limitation will not renew itself like the Homestead Exemption. You must apply each year in order to qualify. Applications are not yet available for the 10% limitation.

For more detailed information on Amendment One, visit the Florida Department of Revenue’s website.

If you prefer to speak to a human voice (I think), feel free to call me at 305.491.7179.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305.491.7179 or SalgadoA@gmail.com.

Neo Lofts Furnished Rental – $1,300/month

This functional 1-bedroom loft space in Neo Lofts – a contemporary, riverfront, full-amenity building designed with residents’ privacy in mind – is being offered for rent tastefully furnished.

Unit features wood laminate flooring throughout as well as two large impact-resistant picture windows and one sliding glass door that grace the living areas with plentiful natural light.

Exposed ducts, pipes, and track lighting decorate the 11′ ceilings, while white European (Dellacassa) kitchen cabinets with black granite tops and white energy-efficient Whirlpool appliances compliment the modern and minimalist decor.

Unit also features a stacked washer/dryer inside a laundry closet with additional storage space.

Building amenities include an infinity-edge pool, a fitness center, spa, sauna, steam room, meditation garden with BBQ picnic area, contemporary lounge with billiard table, lighted tennis court, valet parking (for guests) and 24 hr front desk service.

Rental price includes all living room, bedroom and bath furniture (except for television), decorative framed artwork, designer lighting (track and recessed), window treatments, use of a storage locker and one (1) assigned covered parking space.

Neo Lofts is conveniently located at 10 SW South River Drive in the Riverside neighborhood of Miami on the south bank of the Miami River in close proximity to I-95, Downtown Miami, the Brickell Financial District, the Beaches, and Coral Gables.

It was developed in 2004 by Neo Concepts, designed by Beame Architectural Partnership, constructed by Codina Construction and is managed by Miami Management, Inc.

For more information on this unit or any other RENTAL POSSIBILITIES in NEO LOFTS call me at 305.491.7179 or email me at SalgadoA@gmail.com.

Adrian Salgado is a Realtor Associate with RED I Realty in Miami, FL and can be reached at 305-491-7179 or SalgadoA@gmail.com