What do you need to know for 2021? Some Real Estate Trends for this year

 

After a year complicated by the pandemic, 2021 presents us with many challenges. But how will the housing market perform in the current economic system? Here are some of the trends we believe will be present this year:

Trend No. 1: Few possibilities for homebuyers

There were not enough homes for sale during last year to meet buyer demand. The shortage of inventory means you need to be vigilant when looking for a home, as the best homes are likely to sell quickly.  In November 2020, more than 7 out of 10 homes sold had been on the market for less than a month –they sold very quickly.

If you want to find a good home in this scarce market, we recommend to:

1. Give up a few things you thought were a must-have for your dream home.

2. Broaden your search. Your dream home won't necessarily be in the location you think.

3. Get pre-approved.

Trend No. 2: Home prices continue to rise

In November 2020, existing home prices increased 15% compared to last year, reaching a national average of more than $300,000. If you are going to buy a home in Doral, in such an expensive market, you should consider how much you are willing to spend. Make a budget of what you can afford to spend and what you cannot.

We recommend:

- That your house payment does not imply more than 25% of your monthly salary.

-  To save at least 10-20% down payment.

- To choose a 15-year fixed-rate conventional mortgage.

Trend #3: Online real estate services are on the rise

Have you heard of real estate services like Zillow? These allow you to search or list homes for sale online.

What you do is tell companies like Zillow or Opendoor about the house you want to sell. They buy it from you, inject some money into it to resell it at a higher price, take care of all the paperwork for the house, and then charge you pretty much the same as an agent's commission for selling expenses.

Trend #4: Risky buying options are more affordable

Rent-to-own

First, if you're itching to buy a home but can't afford it yet, some sellers like Divvy offer a rent-to-own agreement.

The downside to rent-to-own is that if you later decide you don't want to buy the house or something breaks the contract, all those payments you made will have been a waste.

Whether you’re selling or buying, you can take advantage of the current trends by partnering with a professional real estate agent.

Doral by the numbers

CityPlace Doral

CityPlace Doral is an incredible mixed-use project that Suffolk Construction and Related Groups and Shoma Homes have been developing. CityPlace is projected for people to live, eat, shop, work, play without having to go far, just everything  in one place. The first good news is: its first phase was recently inaugurated!

This part of the project features luxury condos, apartments, single family homes, and about 250,000 square feet of retail space. It’s also the only place with a Fresh Market in Doral. CityPlace is distributed into two eight-story residences buildings facing each other and a “boutique boulevard” on street level, which features fashion-forward shops.

As for its retail tenants, CityPlace Doral features more than 30 bars and restaurants, a CinéBistro Cobb Theater with full-service dining during movies, a Kings’ 10-pin bowling, Pie Bar, Salsa Fiesta, Mixtura, Angelo, Tommy Bahama-Island, Cooper’s Hawk, Burger & Beer Joint, Sushi Siam, and Cabo Flats. CityPlace Doral is oriented not only towards a great and high life quality, but also an entertaining one.

One of the greatest things about CityPlace Doral is its location, which is at walking distance from Oasis Park Square and CityPlace Dora’s The Manor. Basically, this first phase has it all for its residents.

Phase I will be complemented by Phase II, which is also a combination of retail and residential development. It will include 300,000 square feet of retail development, 280,000 square feet of           Class A office space, and 303 apartment rental units. Its retail development will include entertainment, restaurants, spa, fitness, and retail space.

The second good news is: Phase II is on schedule for completion by the end of 2016!

Investment at Modern Doral

Modern Doral is an area with lots of benefits. It is at a 10-minute drive away from the International Airport of Miami, it has the most remarkable schools in the area, and it’s very close to restaurants and malls. At Modern Doral you can easily find anything you need and want. This area is usually known for being comfortable and modern at the same time.

This property is located at 9730 NW 74 TE, very near the American Kestrel Lake. It is a perfect house for a big family; it has 4 bedrooms upstairs and 1 full master bedroom (with its private bath) on the ground floor. Sharing bathrooms will no longer be a problem; this house features 5 full bathrooms. It has a porcelanato floor on the ground floor and laminated wood on the second floor. The kitchen is made out of top-of-the-line appliances and the entire house has exquisite finishes. You will feel the luxury when living in this property.

When thinking about investing on a property, one should take into consideration the location and the house layout. This property has it all! It is in a very centric zone and is the perfect combination between comfort, elegance, and coziness. You can acquire this 3147 square feet property for the price of $895,000 –or $4,800 per month. This is the perfect opportunity to live at Modern Doral!

Five Doral Listings Under $500K

South Florida has ridden a huge wave out of the financial debacle that sank the real estate market several years ago – and at a pretty fast rate.  Much of the rebound is due to the influx of foreign buyers wanting a solid place to put their money that would offer a good return.  The US real estate market – specifically Florida – fit the bill. 

In a press release from the Miami Association of Realtors, “Brazil again led all foreign countries searching for South Florida real estate on the MIAMI Association of REALTORS® (MIAMI) website in February 2015.”  Additionally, according to MAR, “Brazilians spend the most on South Florida properties among foreign consumers, paying an average of $495,000. On average, Miami’s international buyers paid $444,000 per purchase, compared to $245,000 statewide.”

The Doral real estate market is on an upswing in terms of development by real estate developers that see the value. For foreign buyers looking at South Florida as a place to invest, Doral real estate offers significantly more property for the money.  When considering the above statistic, here are the top five Doral listings under $500K:

10961 NW 65^th Street, Doral Isles Antigua, List Price:  $499,900

This townhouse offers a beautiful lake view along with a nice, open floor plan.  Inside, owners enjoy the gorgeous Italian kitchen with quartz countertops, wood floors, stainless steel appliances and other upgrades. Doral Isles is one of Doral’s most exclusive communities with amenities like an unbelievable community club house with several resort-style pools, an unbelievable children’s playground, basketball and tennis courts and more.  Antigua is a townhouse community that is situated adjacent to the community’s club house and pools. There are currently only two listings in Doral Isles Antigua and only one sale over the past six months at 95 percent of the list price (average number of days on the market at 182 days).  Doral Isles allows annual rentals; however, there are none currently for rent in Antigua.  The average monthly rental rate for Doral Isles condominiums typically ranges from around $1,800 to $3,000. 

Listings in Doral Isles

8759 NW 98^th Court, Grand Bay at Doral, List Price:  $499,000

Doral is well known for being home to several luxury townhouse communities and Grand Bay at Doral is one of them.  Just completed in the last couple of years, Grand Bay Doral is a community of executive single-family homes and large townhomes.  This unit is situated on a single house lot and features a full bed and bath on the main level along with three bedrooms and two baths on the second floor.  Additionally, the large kitchen has stainless steel appliances, stone counter tops and custom wood cabinets.  There are so many incredible fixtures and finishes throughout the house including tile flooring on the first floor, wood on the second floor and a wonderful patio to enjoy the Florida breezes.  Grand Bay Doral is a newer neighborhood just a short drive from Trump National and top schools in Doral. There are currently seven townhomes listed for sale in Grand Bay Doral with list prices ranging from the mid-$200s for two bedrooms to almost $500K for four bedrooms. This townhouse is also available for rent (furnished) at $3,000 per month.

Grand Bay Doral Listings

5184 NW 108^th Place, Piazza Vecchia, List Price:  $499,000

This four-bedroom, three-bath home is just under 2,400 square feet with a newly renovated kitchen, large, open living areas and a private outdoor pool.  Piazza Vecchia is a small gated enclave of homes ideally situated in the heart of the City of Doral close to shopping, top schools, golf and major arteries into and out of the area.  There are currently seven listings in Piazza Vecchia with three having four bedrooms and three baths.  This listing is the lower priced of the two listings.  Three-bedroom properties in Piazza Vecchia fall between the lower-$300s and mid-$400s while the four-bedrooms start at just under $500K and climb to the mid-$500s.  There is currently one rental listed with a monthly rental rate at $2,350 (three bedrooms, two baths).  Taking that average price per square foot, investors can expect a monthly rental rate for this property to fall around $3,000. 

Homes for Sale in Piazza Vecchia

7031 103th Court, Vintage Place, List Price:  $499,000

Another new development that has finally come to fruition is Vintage Doral, a community filled with beautiful Tuscan style single-family homes and carriage houses (Vintage Place).  This carriage-style home features four bedrooms and three and a half baths along with Italian custom cabinetry, porcelain flooring, marble bathroom counter tops and so many more amenities.  Community amenities include a private gated entrance with a 24-hour manned guardhouse, professional community management,  private clubhouse overlooking a beautiful lake complete with a fully-equipped adult fitness center and children’s playroom, a library, a business center with media room and kitchenette, an over-sized swimming pool with spa, sun deck, a BBQ gazebo area and fountains and so much more. One of the nicest features at Vintage Doral is the green park with trails for walking, running and biking. With six properties listed for sale at Vintage Place, this unit is one of the lowest priced in the community with the other topping out at in the mid-$600s.  Vintage Place rentals are also available for rent with monthly rates ranging from around $3,000 to $4,000. 

For Sale at Vintage Place

10461 NW 61^st Lane, Doral Cay, List Price:  $498,500

In addition to being located in the heart of Doral, this brand new Doral Cay townhouse features four bedrooms and three baths under 2,100+ square feet of living space along with a great kitchen that has upgraded counter tops, stainless steel appliances.  Doral Cay is a gated community with a large clubhouse, fitness center, resort-style pool, sun deck overlooking lake, playground, guard house with 24-hour guard and so much more.  The location only makes this one of the most desirable neighborhoods in Doral as it is adjacent to the Morgan Levy Park and all it has to offer and very close to top Doral schools and top Doral golf courses. Currently, there are 15 listings in Doral Cay with list prices ranging from the mid-$400s to mid-$600s.  Additionally, Doral Cay rentals  typically range between about $2,600 and $4,200 per month for an annual lease.

Doral Cay Listings

Even though list prices are showing signs of increasing, the amount of property for the investment far outweighs other areas of South Florida. So for foreign investors looking at South Florida real estate, Doral properties should be at the top of the list of possibilities.  Developers see the value...so too should those wanting to buy real estate.

Doral – Florida’s Top City for Real Estate Investing

Recently, Doral was named the best place to invest in real estate in the state of Florida in a study conducted by Nerdwallet, a consumer advocacy group that specializes in empowering people to manage their money wisely. In the study, Nerdwallet looked at the market health, taxes, 10-year housing price change, vacancy rate and price per square foot. When it came to tallying the numbers and ranking the cities in Florida, Doral rose to the top.

Highlights of Doral

When you think about the fact that Doral was incorporated a little more than 10 years ago, it is amazing to realize all that it has to offer. To quickly emphasize some of the outstanding highlights of Doral, here are several reasons why Doral ranked first.

• Affordability compared to the surrounding communities like those in Miami
• Low unemployment at only 4.5% compared to the state’s rate at 5.8% (Homefacts, January 2015)
• Growing population (expected to hit 80,000 in the next five years)
• Increasing home values

When you look at all of these statistics, it makes Doral look that much more appealing.

Doral Real Estate

The Doral real estate market is on the rise. When the entire real estate market crashed several years ago, everything around Doral seemed to be taking a nose dive in terms of property values. While they did drop, the home values within Doral still maintained much less of a drop than other surrounding areas.

Now as the market has shown continued growth over the past few years, Doral is expected to continue its climb while still maintaining a much more affordable cost of living than many of its Miami-Dade counterparts.

Real estate developers like Shoma, the Related Group, Terra Group and others have put their faith in the growth with new residential and mixed-use communities like City Place, Downtown Doral, IVI Doral, Vintage Estates and others under development.

Still with these fantastic neighborhoods in the works, the established communities that have been here through thick and thin remain popular and highly sought-after neighborhoods in which to live. Among some of the best are Doral Isles (have you seen the community amenities, specifically the pool?), Doral Estates, the Reserve at Doral, Doral Cay, and others.

Housing is much more affordable especially when you compare what you can get in Doral versus other area communities. For example, in Doral, $500K buys a nice four-bedroom home in a Doral Isles or Islands at Doral neighborhood as well as a brand new three-bedroom unit in 5300 Paseo (Downtown Doral’s newest condominium under construction) or a spacious four-bedroom townhouse at the Reserve at Doral. In other parts of Miami-Dade, properties of this size may list for much more depending on the location.

A Lot to Offer

Businesses find Doral to be an ideal location especially in the area of importing and exporting or travel as the city is centrally located close to major thoroughfares, Miami International Airport and the Port Authority. In fact, Carnival Cruise Lines has its headquarters located in Doral because of its close proximity to the ports and its affordability.

Buying real estate in Doral and more importantly, living in Doral just makes sense. Families like it because of the excellent Florida schools (A-ranked), part-time residents like it because of its proximity to some of the best golf courses in the country and businesses like it because of the ease in getting to it as well as other parts of Miami-Dade County.

Doral has a lot offer those who live and visit here. The next few years are going to be big ones and we cannot wait for the magic to continue. 

Considerations for Becoming a Landlord

Florida is full of residential real estate that appeals to those wanting to invest in rental property. Doral real estate is no exception. In Miami-Dade, Doral is full of affordable properties that make for excellent rental property and is on a huge upswing in terms of residential developments in the works and under construction.

Being a landlord can be very profitable but involves many responsibilities.  Here are a few tips to follow if you are considering becoming a landlord:

Vet Potential Tenants. Remember the old saying “Don’t judge a book by its cover?” Too often, novice landlords look at the appearance of potential tenants and make a snap decision on leasing property to them. It is important that even they have the most attractive, well-kept look (or the grungiest for that matter), you do a full background check on potential tenants to ensure you have a successful relationship with the people who lease your Doral condominium or home.

Follow the Rules. Just like with any other legal agreement, it is very important to follow the rules.  There are strict Florida tenants’ rights in place to which landlords must adhere.  This applies to anti-discrimination laws, disclosures, eviction rules, and more.

Provide a Detailed Checklist.  A checklist of everything in the rental property should always be given to your tenant upon signing a lease.  Ask your tenant to go over each every item on the list to make sure there are no issues.  The list should include any imperfections like a stain on the carpet in a bedroom.  At the end of the lease, once the tenant has vacated the property, go through the same list to check each item once again.  If there are any issues that were not present at the beginning of the lease, you can address them with your tenant and come up with a plan to correct them.  This helps to validate retaining any portion of the deposit. It is important to take into consideration normal wear and tear that comes with living there.

Always Have a Current Lease in Place. If you keep a current and detailed lease in place, you can avoid a ton of problems down the line.  The lease should lay out every facet of the lease in terms of when and how much to pay, responsibilities of each party, lease termination, etc.  The Florida Bar provides a detailed lease agreement (and other forms) for landlords to use as their agreement with tenants. Another suggestion is to use an attorney who is very familiar with Florida real estate laws.

Fix What Needs to be Fixed. One of the most important parts of a good landlord-tenant relationship is honoring the lease agreement.  If something for which you are responsible breaks or quits working, get it repaired or replaced.

Respect Your Renters’ Rights. One of the biggest parts of being a landlord is respecting your renters’ rights.  In Florida, there is a set list of tenants’ rights (Florida Statutes at Part II, Chapter 83, Florida Residential Landlord Tenant Act) that landlords must follow.  In particular is the right to privacy.  Even though landlords have a right to enter the property, they must give adequate notice to their tenants prior to entering the leased property. In Florida, the law states that 12 hours is adequate notice but many landlords suggest usually 24 hours is considered adequate.  This includes when making repairs or replacements.

Know the Appropriate Steps for Eviction.  No one wants to deal with an eviction but it can happen.  When dealing with an eviction, it is best to consult with an attorney to ensure that every step is followed to the letter of the law.  There have been many instances where shortcuts were taken or steps were omitted that delayed the eviction process sometimes extensively.  

Work with a Licensed Broker.  A lot of Florida real estate brokers have a property management department in their offices who work with rental investors.  Property managers are typically well trained in the rental process and can help to ensure that you have a positive experience. The fee involved is usually worth its weight in gold. This is always a good idea especially if you are unsure about the details of the rental process not to mention manage the properties.  

Follow These Steps

There are so many opportunities to buy Doral condominiums, townhouses and single-family homes for the purposes of rental investments, and most tenants hold up their end of the agreement without any issues.  But as with any kind of agreement, there are those who turn out to be not so great.  

With the right process in place, hopefully, you will get lucky and have tenants who go above and beyond to treat the residence as if it was their own. When you hit the jackpot with a great tenant, you want to do everything to keep them happy.   

Doral Neighborhoods Offer Excellent Rental Investments

A Miami Today article indicated that the majority of Miami Dade County homeowners are absentee owners – either living elsewhere and spending time here (snowbirds, business people) or investors who own rental property with tenants residing in them.  In fact, “Of the nearly 352,000 condominium units in the county, 37 percent, or 130,000, had a homestead exemption, according to the Miami-Dade Property Appraiser’s 2014 preliminary tax rolls released mid-year.”  Only 37 percent!

While there are slightly more condominium units in Doral with homestead exemptions, more than half do not claim this tax exemption. “County commission district 12, which includes the City of Doral, has 34,402 condominiums, with 46.5 percent of them homesteaded, according to the property appraiser.”  With this in mind, we thought we would look at a few Doral condominium and townhome communities to look at the numbers in terms of sale prices, how long it takes to sell and what kind of rental rates they fetch. 

Doral Isles.  If you have spent any time in Doral, you know that Doral Isles is a very highly sought after neighborhood in which to live.  And just like most any area in Miami-Dade, there are rental properties available.  In fact, many people who want to live here end up renting as it may not be a possibility to own a home in this neighborhood.  For investors looking at Doral Isles, there is a mix of single family homes, townhomes and condos making for a lot of variety.  A condominium in Doral Isles starts in the low-$200s at The Courts at Doral Isles or The Gates at Doral Isles and climb to the upper-$200s or low-$300s where townhouse list prices at Doral Isles North, Martinique and Caribbean start, and surpass $500K.  On the lower end of the spectrum, the condominium residences at The Courts and The Gates at Doral Isles fetch monthly rental rates anywhere from about $1,700 to over $2,500.  Doral Isles real estate offers investors a good opportunity to own rental property that has a solid rental history.

The Reserve at Doral.  There are two sections of the Reserve at Doral – east and west.  Each has its own clubhouse and pool while both have easy access to the major thoroughfares.  Unlike many of the other more contemporary or Mediterranean designs, the Reserve at Doral is a community of ice cream colored townhomes with three and four bedrooms and a Charleston feel to the architecture.  The Reserve features list prices starting in the mid-$300s for a three bedroom property and climbing to over $500K for a four-bedroom.  In the past six months, five properties have sold an average sale price per square foot at about $182 and the average number of days on the market at about 230 days (includes one property that took over 18 months to sell).  Rental rates range from about $2,400-$2,500 to over $3,000 per month.  Currently, there are about five properties for rent at The Reserve at Doral East which is pretty typical at any given time.  Because the Reserve is home to larger townhomes that are 2,000+ square feet in size and have ideal amenities like a pool, fitness, and more at the club houses, they are very sought after with those who want to live in Doral.  Most are rentals are annual leases with renewal options making it very appealing for investors who want a steady stream of income from their investment.

St. Maarten at Grand Bay.  As part of the exclusive and new development, Isles at Grand Bay, St. Maarten offers resort-style amenities to residents like a large clubhouse with oversized pool and sundeck, a kids’ water park, aerobics and fitness rooms, tennis, basketball, playground, park area and more.  Interior features include gourmet kitchens with granite counter tops, stainless steel appliances and custom cabinetry. St. Maarten is centrally located in Doral close to shopping, golf and the major arteries into and out of Miami-Dade County.   In terms of real estate investments, properties for sale at St. Maarten at Grand Bay are offered at list prices ranging in the mid to upper-$200s.  Rental rates fall between about $1,700 and $2,500 per month. 

Just the Tip of the Iceberg

These communities are just the tip of the iceberg when it comes to Doral rental property.  For renters, there are so many options when considering leasing a home in Doral whether a condominium, townhome or even a single family home.  While Brickell, Downtown Miami and the up and coming areas like Edgewater offer a certain appeal, traveling a few miles west offers a lot more living space and saves renters a ton of money.

Investors see the value of investing in Doral real estate.  Another Miami Today from August 2014 stated that “rents west of I-95 have increased 17.7 percent, according to data CraneSpotters.com compiled from the Southeast Florida Multiple Listing XChange.”