Monthly Archives: September 2013

09.29.13
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9 Core Realty Featured Lot of the Week: 2003 NE 35th Street Cape Coral, FL 33909

The 9 Core Realty  featured lot of the week is a huge, corner lot located at 2003 NE 35th Street Cape Coral, FL 33909.  Only two blocks from Island Coast High School, this lot is highly desired among families and features an active, close knit community lifestyle.  Minutes from shopping, dining and entertainment, this lot is close to everything and is a short drive from Downtown Cape Coral and Fort Myers.

Listed for $10,900 this lot is sure to sell fast, as with other lots located in the highly desirable northeast section of Cape Coral.  Development is high is this area with many gorgeous homes being built.  Don’t miss out on your opportunity to own a parcel in this up and coming area.  To learn more about this property contact a 9 Core Realty  land sales expert at (239) 222-3331.

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09.23.13
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Investors Spur Growth in the Florida Real Estate Market

Investors continue to steer Southwest Florida’s real estate market recovery with all-cash deals, which in many cases are squeezing traditional owner-occupiers out of the market.  Many of those purchases stem from foreign investors, who are gobbling up foreclosures and short sales at a ferocious pace for use as rentals, a phenomenon that first began elevating the market almost a year ago.

That investor thirst, coupled with tight lending restrictions, have made cash real estate transactions more prevalent in Southwest Florida than perhaps at any time before.  Cash represents a very large portion of current real estate sales, especially in many Florida markets.

Buyers closed on 2,091 homes in Lee, Collier and Charlotte counties in August, well outpacing numbers from a year ago.  Of those, buyers paid cash on 62 percent of the sales in Lee, 65 percent in Charlotte and a whopping 74 percent in Charlotte, all above the national average of 40 percent in August.  Those gains were led largely by bulk-investment buyers.

The recent influx of cash also has been fanned by baby boomers, who have regained enough equity to sell houses up north to finance Sunshine State retirements.  Bank-owned listings and short sales, which also tend to draw more cash offers than mortgage-backed buyers, both have risen steadily over the year, as well.

Some real estate consultants point out that this area always has carried a greater portion of cash buyers than most real estate markets, given the seasonality and dependence on retirees.  To learn more about the local market contact a member of the 9 Core Realty sales team at (239) 222-3331.

09.16.13
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This Featured Parcel of the Week is Prime for Developers and Investors!

Chiquita

Developers and investors will jump quickly on this featured Parcel of the Week from 9 Core Realty .  Located at 1817 Chiquita Blvd. Cape Coral, FL this parcel features eight buildable lots in a prime area of the city of Cape Coral.  The desirable southwest Cape Coral neighborhood is close to shopping, schools, main thoroughfares and The Gulf of Mexico.  Additionally, this parcel is steps away from the Palmetto Pine Country Club, making it an attractive neighborhood for golf enthusiasts!

To learn more about this great property  contact a 9 Core Realty land sales expert at (239) 333-2221.

09.09.13
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Calling All British Investors! Invest in United States Land Parcels Through a Self Invested Personal Pension (SIPP)!

The United States is featuring many lucrative land investment offers to foreign investors and British land investors are snapping up many ideal land parcels through self invested personal pension (SIPP) purchases.  A SIPP is a personal pension option that allows the contributor to decide exactly where their investments are placed.  Gone are the days of a broker or financial advisor deciding where your money is invested (usually in equities and funds).  SIPP’s put the individual investor in the driver’s seat as far as their pension is concerned while being entitled to complete and full tax relief.  Additional benefits of purchasing land with a SIPP include:

  • Tax relief on contributions up to 40% (for cash investments only)
  • No taxed dividends
  • No UK Capital Gains Tax
  • Inheritance tax benefits are possible
  • Almost all types of pensions are accepted for SIPP
  • All legal expenses associated with land purchase can be covered under a SIPP

Keep in mind that to use your SIPP to purchase property for sale in the United States you must work with an approved SIPP provider.  Your financial advisor or institution will be able to help you make an informed decision when locating a provider.  Be sure to tell your advisor that you plan to use your SIPP for land investment purchases as some SIPP providers specialize in only stocks, shares and equities.  To speak to a US land investment specialist for further details about SIPP land purchases contact 9corerealty.com at (239) 333-2221.

09.02.13
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Direct Ownership of Real Property for Foreign Investors

Foreign investors see Florida as a stable and secure place to invest in real estate and land and lots for sale.  Foreigners easily can purchase real property in the United States unlike some countries that make it difficult for foreigners to own real estate.  The weakening of the U.S. dollar and lower real property prices due to foreclosures make these investments even more attractive for foreign investors

Direct ownership of U.S. real property by a non-resident alien is probably the least complex structure and has some advantages.   A principle advantage is the long term income tax treatment currently at 15 percent.   Another advantage is possibly avoiding some unintended tax issues such as triple taxation that can occur when a U.S. parent company owns a foreign wholly owned subsidiary that disposes of U.S. real property held by the foreign corporation.   Another advantage is that the transaction is more transparent and less subject to IRS scrutiny.

Foreign investors looking to purchase real property that will become a future residence should consider direct ownership.   Section 121 personal residence gain exclusion rules apply to foreign investors, but additional rules must be met.   A foreign investor currently must live in the residence 50 percent of the time over the course of the two 12 month periods.   A foreign investor is also limited to investment real estate purchases of $300,000 or less.   The Housing Assistance Tax Act of 2008 has modified some of the rules for section 121 gain recognition by making it necessary in some cases to allocate some of the gains to periods of nonqualified use thereby reducing the deduction that might be received.

There are a number of disadvantages to direct ownership as well.  A direct owner will be required to file a U.S. income tax return because the real property creates the assumption of a business or trade.  Also a direct owner can be exposed to estate tax issues which can often times involve higher tax rates.  A direct owner will pay income tax at the time real property is disposed of, which may not necessarily be true under other structures.

When real property is disposed of it is treated as though the individual was in a trade or business under code section 897.  Section 897 rules do not affect residency status, so foreign real property holders need to review residency separately from their real property holdings.  Though real property is treated as a trade or business at disposal any rental income may be treated differently. To learn more contact a 9 Core Realty Representative here.