Tom Kelly: The Real Estate Communicator

Newspaper Column Archives

Off-season second home buying . . . and financing

A friend of mine thought he would take advantage of the rotten winter weather – and the perception that real estate is about the same – and make a low-ball offer on a piece of recreational property that one day could become his second home.

His theory was that owners of summer lake cottages felt removed from their sunny getaways at this time of year and those older owners, reluctant to tackle another stretch of off-season maintenance and security, would especially be more likely to consider a cash proposal during the dark days of winter.

“Besides, I could borrow against my primary residence to pay for most of the place and then take a larger deduction on my income tax.’’ (more)

Checkbook control with real estate IRAs

Individual Retirement Accounts that feature self-directed real estate purchases have become more understood in recent years, and consumers now a have speedier avenue to time-sensitive investments.

Many providers of self-directed real estate IRAs now can set up a limited liability company (LLC) that allows consumers to write their own checks for property investments – including foreclosures and recreational properties – without waiting for a custodian to process paperwork or courier documents. (more)

U.S. lenders not racing to capture Canada

While United States mortgage lenders are heading south of the border to finance real estate in Mexico and Central America, the push to penetrate the Canadian mortgage market is considerably cooler – even with the 2010 Olympic Games in Vancouver just around the corner.

Retirees and aging baby boomers "from the states" are drawn to Canada for its wonderful skiing, health care, bargain medicine, terrific sailing and clean air but the numbers of second home buyers and older full-time residents have not been as attractive to lenders as the pool of thousands of snow birds who head south. (more)

Soft market? U.S. second homes popular for foreign buyers

Two years ago, while attending the home builders’ annual convention in Orlando, Fla. a top-producing local real estate agent was bubbling over the interior design features of a vacation home.

“All of my international buyers are just going to love this,’’ the agent said. “I can’t wait to tell them what’s now available.’’

I was intrigued. How many international buyers did she have?

It turned out that more than 60 percent of the agent’s clients were buyers from overseas. And, she is not the only real estate professional cultivating the foreign market. According to the National Association of Realtors, 65 percent of Florida Realtors had at least one international customer and the trade group’s “Profile of International Home Buying Activity” indicated that at least 7 percent of home sales in Florida were to foreign purchasers. (more)

Kiosks for condo centers – even in Second Life

VANCOUVER, B.C. - What’s new in Puerto Vallarta condos? Want to see the latest San Diego high rise?
No longer do you have to wait for a national road show to get a feel for new developments around the world. Cliff Bowman, the Vancouver, B.C.-based marketing expert who has turned pre-selling condominium buildings into an industry art form, has taken his online condo idea to retail stores. His Urban and Resort Condo Centers offer consumers a menu of popular destinations and in-city projects while providing developers and builders a downtown sales presence for a fraction of the cost of finding and leasing their own building. (more)

Log homes: No longer just cabins, second homes

The idea and practice of a log-home building party still exists but the log and timber frame industry has evolved into an all-encompassing housing process from basic cabins to custom luxury homes. It has also caught the “built green” wave with more and more primary and vacation home seekers inquiring about a solid log structure.

Today’s log home is anything but a dark, drafty, rustic cabin. It is a thoroughly modern house built with logs instead of studs. The phrase “log home” refers to a method of construction, not a style of house, according to the Log Homes Council (LHC), a part of the National Association of Home Builders' building systems councils. In fact, if the phrase simply were dropped, it would please the nation’s log home producers. (more)

Reverse mortgages coming for second homes

Not only has the reverse mortgage industry left its infancy stage and is racing towards adolescence, but its next growth step apparently will be coming sooner than expected.

While reverse mortgages for second homes have been available through a handful of small regional banks, they will soon be offered by at least two national lenders. Bank of America, which recently announced an agreement to acquire the reverse mortgage business of Seattle Mortgage Company, is expected to roll out the second home wrinkle as soon the purchase is completed next month. BNY Mortgage, which last week introduced the industry’s first jumbo fixed-rate product, also will allow reverse mortgages on second homes under certain guidelines. (more)

Developers taking a shot at Mexico for the 50+ market
(Copyright 2007 - Tom Kelly)

Who were the first snowbirds? It depends on where you ask the question.

Historically, snowbirds have been retirees who escape the cold of winter for a warmer climate. Residents of the East Coast tend to say they were the first to dodge the snow - heading to Florida and the Caribbean, while West Coasters picked up the trend much later and invaded Arizona and southern California. The term “snowbird” also is given to a significant number of Canadians who make Victoria, British Columbia, their home in January and February. (more)