This is a video about scuba diving at Key Largo,Florida.You can expect to encounter (turtles,sting rays,barracudas,yellow fish,parrot fish,nurse sharks,bull sharks, angel fish, etc,etc).This is simple an underwater paradise.The video is not in HD bec…

Housing wealth has a more immediate impact on consumer spending than stock wealth and has sustained the U.S. economy since the beginning of this decade.

Home ownership is the traditional starting point for American families to accumulate wealth, according studies by the National Association of Realtors®, America’s leading advocate for home ownership.

NAR reports that the national median existing-home price increased 12.7 percent in 2005 and is projected to rise at a more normal rate of 5.0 percent this year. Since record keeping began in 1968, the national median home price has risen every year, even during recessions and periods of sales decline. Typically, in a balanced market, home values rise at the general rate of inflation plus 1.5 percentage points.

Buying a home should be approached as a long-term investment, providing both equity accumulation and tax benefits over time. Despite some high profile media reports, it’s important to note that most of the country has never experienced even a temporary downturn in home prices since modern record keeping began.

Low mortgage interest rates, a growing number of households, strong demographic factors, economic growth, and an improved labor market have been driving Americans in record numbers to purchase a home. In addition, over the last few years, Americans have shown a readiness to pull their money out of stocks and put it into real estate, often as a second home – a wise and practical move that provides safer returns in a tangible asset. In fact, one out of three of homes purchased are a second home – about a third of those are vacation homes and the rest are for investment purposes, generally to provide rental income.

Demographic demand also favors housing over the long term. The children of the baby boom generation, often called echo boomers, are the second largest generation in U.S. history. They total about 75 million people born from 1982 to 1995, and are just entering the years in which people typically buy a first home. In addition, the boomers themselves remain in peak earnings years, there is a strong immigration impact, and minority home ownership rates have been trending up.

The sharp changes in the financial markets over the last few years underscore the stability of residential real estate as a safe choice for consumers. Although it’s possible for local housing markets to experience temporary price corrections, most of the peaks and valleys in home prices that deviate from a normal, gradual increase tend to smooth themselves out during the typical period of home ownership.

Dollar for dollar, the rate of return on an individual’s cash down payment on a house is substantial. Home buyers typically use their own money to cover only a small portion of the purchase price, yet the home appreciation they realize is based on the total value of the property.

First-time home buyers make a median down payment of 2 percent, while repeat buyers put 21 percent down – thanks to the equity they’ve build in their previous home.

According to Harvard University’s Joint Center for Housing Studies, there is a dramatic increase in the rate of return on housing the longer it is held. For instance, the typical homeowner who experiences an annual home appreciation rate of 5 percent and who made a cash down payment of 10 percent will generally receive a 94 percent return on that cash after owning the home only three years. After owning for five years, a homeowner can expect a rate of return on the down payment to increase to 225 percent; after 10 years, the rate of return jumps to 623 percent.

The stock market has experienced wide swings in value over the past 20 years. During that time, overall home values have continued to rise steadily and contribute significantly to household wealth and spending patterns.

Housing is not a quick-in, quick-out investment. When purchased for the long term, housing is one of the safest investments a consumer can make. In addition to the savings accumulated through a buildup of equity and tax advantages, a home provides shelter. No paper investment provides this benefit.

Homeowners accumulate significantly more wealth than renters. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700. Clearly, owning a home is the best way for most families to build a nest egg.

Homeowners use their home equity to get cash for emergencies as well as for the purchase of big-ticket items, and have more confidence in housing wealth gains than stock gains that could prove to be unsustainable. In addition, the capital gain people realize from the sale of their home is a significant source of down payment funds for most repeat buyers; those funds are also used for other purposes that stimulate the economy through consumer spending.

The above information and statistics are from the N.A.R. National Association of REALTORS

First off, congratulations at looking to the Keys for a possible vacation home. The good news about the Keys from an investment angle are:

1. There is only so much waterfront or Coastal property available.
2. 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 access 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.

Don’t Jeopardize Your Loan
Taking out a another loan, buying a car, or making large credit card charges before you close can jeopardize your loan commitment. Lenders run a second credit check prior to closing to check for new charges.

Time to Close
Closing at the beginning of a month, the lender will require you to “prepay” the interest on your loan from the day of closing to the end of the month. Therefore the cash you need to close will be more than if you close at the end of the month. Talk with your lender about this.

Buyers Remorse
It’s common for buyers to feel stressed or remorseful during and after the purchase of a home, Educating yourself about the buying process will help minimize “buyers remorse”.

You will probably forget it soon after you move into your new home.

Notify Services & Utilities
Don’t forget to contact services such as: post office, insurance, movers, telephone, utilities, newspaper, etc. a few weeks prior to you moving out to “change over” billing/mailing addresses.

See your local directory of phone numbers of such services.

Arrange for Mover
Get a couple of written estimates from movers on the services they provide for the costs of your move. Check the local Yellow Pages and search to get quotes and contacts.

Final Walk Through
Do a final walk through as close to the sign off as possible.

Check appliances for operability. Test outlets with a radio or test device. Turn on light switches. Check water faucets and toilets.

Make sure promised cleaning and repairs have been completed.

Check that all items included in the purchase of the home (review contract) are present.

For new construction, write down what needs to be completed or fixed, have builder sign. Include the date when these items will be completed.

Closing Costs
You will have to have your closing cost “monies” deposited in escrow before you can close. Don’t bring in a personal check to pay. Money should be in the form of a certified check or a money wire transfer. Check with your escrow officer.

Imagine owning a Vacation home rental in paradise. Imagine employment or retiring here. Imagine incredible sunsets, tropical weather and palm trees in your backyard. Imagine world-class fishing and diving, just minutes from home. How about year round fruits, vegetables and fresh seafood. Imagine balmy nights with soft tropical breezes and shades of green and blue you never knew existed. If that’s not enough, what about clean air, quiet nights and pure nature mixed in with a laid-back Island attitude.

If all this sounds too good to be true consider this. Since we only spend a small percentage of our lifetimes outdoors, why not make the most of it.

How about going on vacation and never going home

A quick overview of our Florida Keys

I’m going to the Florida Keys! People all over the world love to say that.

The Florida Keys are in fact, one of the most desirable areas in the world to visit. Because of this, our property is some of the most desirable real estate in the world. The islands here comprise a unique American landscape. Called by some, Americas Caribbean. Our islands are reminiscent of the Bahamas, Caymans or Netherlands Antilles. Imagine low lying dots on an azure sea that separates Cuba from the U.S., strung 130 miles in a long narrow corridor athwart the Gulf Stream. Bordered by one of the world’s principal coral reefs that was the scourge of pirates and the Spanish fleet nearly 500 years ago. Our waters beckon year round divers, fishermen, and boaters. For more info on the Keys click here. Also see the Google maps.

Living and Investing in the Upper Keys

The Upper Keys is a great area for both recreation and Investments. The reason is simple: Miami and Miami International is just an hours drive. In Addition, the recent incredible growth in the South Miami area of Homestead (Forecasts call for 1 million people by 2010) is adding to the desire for homes in the Keys.

Why is this good for Investors

Ft Lauderdale, Naples and Miami residents come to the upper Keys for the weekends, meaning rental homes, duplexes, condos and hotels enjoy great occupancy rates. More importantly, Environmental issues and the fact there is just one main road into the Keys strictly restricts building. There is only so much land still available. The Keys can never be like California in terms of growth. Since they are restricted, this protects your investment.

Waterfront Florida Keys Real Estate

is the dream of so many, from Paris, to Frankfurt, to Toronto and New York. The Keys real estate continues to be some of the best real estate that money can buy.

For our future Residents

You can enjoy a laid-back Keys lifestyle plus have just a short commute to Miami and its employment, educational facilities, Culture, shopping, entertainment and more.

In addition World famous Key West is just 2 hours away.