Congress Extends Flood Insurance Program To September 30th

Update July 19, 2010

The House of Representatives has approved a five years extension of the flood insurance program. It has not yet been signed into law. It must still pass the senate before it can be sent to the President for signature.

Federal flood insurance is again available to buyers of Daytona Beach and Ormond Beach homes and condos. This is very important for people buying on the beachside and near waterways on the mainland. The legislation allows policies written before the extension to be retroactive, however, and this is very important, there is still a 30 waiting period between the date a policy is written and when it takes effect.

There are two important points to remember about flood insurance when buying a home:

1. The policy takes 30 days to be effective after it is written
2. Close before September 30th if you need flood insurance

We talked about the 30 days waiting period above, but if your are required to have flood insurance by a mortgage lender, you will need to set your closing date before September 30. I advise targeting 3-4 weeks earlier to make sure that any delays don’t push you into October. Also, policies will not go into effect if there is a storm that could affect the area. Give yourself plenty cushion.

If you’re paying cash, your closing won’t be delayed, but you could be without flood insurance until congress decides to extend coverage again. The current extension is the fourth extension without  a permanent law. There was a delay in the last extension that caused delays in about 1,200 closings a day across the country. The likelihood of another delay is high.

Please contact your insurance agent and instruct them to make sure that the flood insurance policy will be effective, not just written, on the day that you close.

International Instability Keeping Mortgage Rates Down? – Nah

Most people who buy Daytona Beach and Ormond Beach homes and condos care only that mortgage rates are low. With prices being low, it’s a pretty good situation right now for buyers. However, there are those who like to speculate rather than report useful facts and information.

It appears that whatever is happening in the world is often used as an explanation for favored opinions. I been seeing a few references in the past few days that domestic mortgage rates are being held down by instability in international financial markets. I don’t believe this at all.

I’m not an economist, but that doesn’t stop me from understanding some basic things about money and interest rates. Mortgage rates are low because the demand for loan money is down. If there were better places, safe places, for banks to loan money, they would – at higher rates. Long-term bond rates that are correlated with mortgage rates are low, so mortgage rates stay low.

If the economy were in any state close to normal, we suspect rates would be much higher. The US government has been borrowing and printing money during this recession and we will eventually pay for that with inflation. We can’t know for sure when, but if history repeats, we can fully expect it to happen. When inflation kicks in, interest rates and mortgage rates will rise.

Mortgage Rates Next Year Don’t Matter Now

My point is that mortgage rates are low now. Prices are low now. If you are planning to buy, this year and next year will probably be the best opportunity for a long time. If you’re in the market, watch prices and watch mortgage rates. In the long-term, you won’t need to hit the absolute bottom of both mortgage rates and prices. Anywhere close should put you in a solid position for future appreciation.

What is a Condotel?

In response to a questions people who are considering buying condos in Daytona Beach ask me a lot, let’s talk about condotels or condo hotels.

A few years ago, when just about anyone could get a loan for any type of real estate, condotel conversions became big business and took off like wildfire. Daytona Beach condotel conversions took place along the beach. In Daytona Beach and Ormond Beach, there are over 150 for sale right now.

A condo hotel, or condotel, is a hotel or motel converted into a condominium property. Pretty simple explanation, but it gets a bit more complicated. The complication comes from each condo hotel being different in the contracts and rules to be followed by owners and in the condition of sales for the property.

Most of the time, condotel units are simply converted hotel rooms. Sometimes they are upgraded, but quality and style vary greatly. If the converted hotel was a luxury property, the rooms are probably of higher quality and larger. If an old low-end hotel was converted, the rooms will be smaller and of lower quality and less stylish. Many of the units are without kitchens – they are just like living out of a hotel room.

Every building is different and is sold and managed in a different way. This can be frustrating for buyers trying to compare different units in different buildings. The rules, restrictions and fees can vary greatly. Restrictions on a maximum number of days you can stay, the share you receive of rental income, and whether the management company collects fees whether you rent the unit privately or they rent through their efforts.

Financing a condotel can be more difficult than a conventional condo. Few lenders, probably less than 3%, have programs for condotels. These loans will require higher down payments than other loans and will likely be at higher interest rates.

A condo hotel can still make sense for a lot of people if they go in with realistic expectations. Many of these conversions were very well done and the quality of the rooms and amenities is high. Some are in popular resort towns. The idea that you can rent the unit when not using it is attractive.

Being realistic though means understanding that it is unlikely that a condo hotel units will provide you enough rental income to make mortgage payments and cover taxes, fees and insurance. You may get a good portion of expenses offset, but positive cash flow is not likely.

If you are interested in a condotel, find a real estate agent who deals in condotel units. This may be difficult because many agents are reluctant to work in this market. My team does work with people on Condotels. Prices have fallen in recent years to the point that a few of these units are selling under $30,000 in Daytona Beach. There are over 100 condotels in the Daytona area for under $100,000. In addition, condotel transactions are more complicated and difficult than most “regular” real estate transactions.

When buying a condo hotel, you must take great care to understand what you are buying and the contract you are signing. It makes sense to have a lawyer review the documents and help you understand the restrictions, fees and other owner requirements for the building. You need to protect yourself when buying a condo hotel.

Some people who consider buying condotels are interested in Ormond Beach Homes for Sale and Ormond Beach Condos for Sale.

View All Condotels For Sale in Daytona Beach

]]> http://www.lynnbyrne.com/articlesblog/ormond-beach-condos/what-is-a-condotel/feed/ 5 http://www.lynnbyrne.com/articlesblog/real-estate-news/new-listing-ormond-beach-pool-home-for-sale/ http://www.lynnbyrne.com/articlesblog/real-estate-news/new-listing-ormond-beach-pool-home-for-sale/#comments Sat, 10 Apr 2010 17:22:55 +0000 Lynn http://www.lynnbyrne.com/articlesblog/?p=241

Beautiful Executive Pool Home in Ormond Beach Florida

This Ormond Beach executive home is simply beautiful. The owners have recently upgraded both inside and outside. The inside of the home has all those designer touches you would expect in an executive home. The exterior of the home is freshly painted with extensive new landscaping.

You have a lot of flexibility with this home. There are 4 bedrooms, but both the office and bonus rooms could easily be converted to bedrooms. Speaking of the bonus room, it’s very large. It could be a game room, media room, studio, large office. Heck, it’s so large it could be all of those at the same time. It’s on the second floor, so as an office or studio it would afford that privacy and peace and quiet you need.

The pool area is like an oasis from the go-go of daily life. The lanai is covered and protected from rain, while the pool is fully screened. Beautiful fountains, waterfalls and stone accents make for a tranquil scene.

The lot is a bit less than an acre making for a very large backyard. There’s room for games or practicing your golf chipping or anything else you like to do.

Ormond Beach is one of the most desirable addresses in the Daytona Beach area. Mallard’s Reach is a small quiet development of about 35 homes. 34 Manderley Lane sits in a quiet cul-de-sac and the backyard opens into a conservation area. This is a great location. The home is central to shopping, close to highways, and less than 10 minutes to the beach.

If you are looking for a newer modern executive home, you need to see this home.

Call Lynn at 386-566-7503 for more information.

More Ormond Beach Pool Homes

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Please go to Daytona Beach Homes for Sale to see what’s available in Daytona Beach.

Photo Friday – Northern Volusia County Peaceful Sunrise

Welcome to Photo Friday. This is a new feature where we highlight scenes of life in the Daytona Beach area. We have quite a few photos queued up, so this will be a regular Friday feature.

This photo was taken at 6:30 a.m. this morning off of Highbridge Road north of Ormond Beach and south of Flagler Beach. Highbridge Road can be accessed from A1A or John Anderson Drive. The bridge spans the Halifax River that is part of the Intracoastal Waterway. Highbridge Park sits at the southeast side of the bridge. There is a boat ramp and fishing walkway at the bridge. Manatees can sometimes be seen at the park.

There is a lot of water in the area. People fishing are often seen on the many access points to the water. This is a beautiful scenic drive any time of day. A really nice drive is to start at go north on Beach Street off of Granada Blvd. SR 40) in Ormond Beach and travel up the Canopy Road. Beach Street turns into Old Dixie Highway. Continue on to Walter Boardman Lane and turn right. From there turn right at the Stop Sign on to High Bridge. Take your time. The speed limit is low, but you really will want to take your time. It’s simply beautiful.

Here’s a link to the map if you’re interested in making the drive:

View Larger Map

Owning Daytona Beach and Ormond Beach Homes has a lot of benefits. Check back often for more photo adventures in Daytona Beach.

Mortgage Rates Bounce Back from Historic Lows

January 22, 2009

Earlier this week mortgage rates for 30 year conventional mortgages were at 5.14%, at the close of business today, rates were at 5.44% according to bankrate.com.

In our last Daytona Beach Real Estate Weekly Report, we commented that rates were very low and that long-term economic trends would force rates up. We don’t know what will happen next, but I suspect that we may not see 5.14% rates again.

The boost in rates means an additional $37/month on a $200,000 mortgage, or over $13,000 over a 30 year mortgage. We have shown that if rates went from 5.11% to 6.5%, you would pay more for a $180,000 mortgage than a $200,000 mortgage.

So, if you’re in the market for Daytona Beach or Ormond Beach homes or condos, and you plan to finance, keep a close watch on mortgage rates. Check back here often for more information and breaking news.

Daytona Beach Real Estate Video Listings are Here

We have created our first video listing. The home is located at 562 Oceanshore Blvd. in Ormond Beach. This home is what the Florida lifestyle is all about. It’s right across from the beach and has a marvelous pool and deck area in the back.

Check out the Video here or go to Ormond Beach Home – 562 Oceanshore.

It took awhile to get all the technical requirements, video hosting and production requirements nailed, but we were able to do it in a few weeks. It helps when I have a film maker and an IT Director available. I could not have done it without them. Thanks Michael and David.

We would appreciate comments about this video. Many more are coming now that we have the production and technical requirements complete.