4 Proven Ways Real Estate Can Build Sizable Family Wealth

March 5th, 2019

Steve Hollander – Hollander Real Estate
David Greene

Recently, David Greene, co-host of the BiggerPockets podcast and a nationally renowned author and speaker, wrote an article in Forbes explaining how investing in real estate could help build wealth. Many of the points he made also apply to a family owning their own home. Here are a few:

1. Appreciation

“The rising of home prices over time, is how the majority of wealth is built in real estate. This is the ‘home run’ you hear of when people make a large windfall of money. While prices fluctuate, over the long run real estate values have always gone up, always, and there is no reason to think that is going to change.

One thing to consider when it comes to real estate appreciation affecting your ROI is the fact that appreciation combined with leverage offers huge returns. If you buy a property for $200,000 and it appreciates to $220,000, your property had made you a 10% return. However, you likely didn’t pay cash for the property and instead used the bank’s money. If you consider that you may have put 10% down ($20,000), you actually have doubled your investment, a 100% return.”

2. Leverage

“By nature, real estate is one of the easiest assets to leverage I have ever come across—maybe the easiest. Not only is it easy to leverage the financing of it, but the terms are incredible compared to any other kind of loan. Interest rates are currently below 5%, down payments can be 20% or less, and loans are routinely amortized over 30-year periods.”

3. Paying Off the Debt

“One of the best parts of investing in real estate is the fact that … you’re slowly paying down your loan balance with each payment to the bank… After enough time passes, a good chunk of every payment comes off the loan balance, and wealth is created.”

4. Forced Equity

“Forced equity is a term used to refer to the wealth that is created when an investor does work to a property to make it worth more…

Example of this would be adding a third or fourth bedroom to a property with only two, adding a second bathroom to a property with only one, or adding more square footage to a property with less than the surrounding houses.”

Though Green was talking about investors, the same could be said about a family upgrading their own home.

Bottom Line

Green put it best by saying:

There are many ways to build wealth in America, but real estate might be the safest, steadiest and simplest way to do so.”

The Keyes Company – The Power of Our Family

March 4th, 2019

Steve Hollander – Hollander Real Estate
The Keyes Company

Why A Normal Market is Just What We Need

March 1st, 2019

Steve Hollander – Hollander Real Estate
Keeping Current Matters – By Charlotte Parrish

The housing market has been hot for a while now. Homes have been flying off the shelves as fast as they have been listed. Buyers have been competing in bidding wars just to find a home to buy, let alone find their dream home.

This ‘seller’s market’ has driven home prices to new heights. Home price appreciation averaged over 6% across the country.

However, home price growth has recently started to cool down. The latest report from CoreLogic shows that home prices have only risen by 4.7% over the last 12 months.

Many buyers and sellers planning to enter the housing market this year have started to wonder if we are headed towards another housing crash. Ralph McLaughlin, Deputy Chief Economist at CoreLogic, recently stated in an interview,

“There’s no reason to panic right now, even if we may be headed for a recession. We’re seeing a cooling of the housing market, but nothing that indicates a crash.

The real elephant in the room here is housing supply.”

The simple answer is we are returning to a ‘normal’ market. The inventory of homes for sale more closely matches the demand in the market. The added supply means fewer buyers are outbidding each other. Therefore, prices are experiencing less upward pressure. McLaughlin went on to explain,

“If there are a lot of homes on the market and suddenly no one wants to buy them, you’ll get into a downward spiral of price competition. Right now, however, we’re in the opposite situation, there isn’t an over-abundance of homes on the market.”

As more renters looking for their piece of the American Dream enter the housing market, demand for housing will continue to grow. The Joint Center for Housing Studies at Harvard University estimates over 30 million new households will enter the market from now through 2040.

“There’s the natural life cycle of young people getting older and starting to do adult life things which include … buying a house and that’s a lot of potential inertia that could last indefinitely.”

Bottom Line

Home prices will start to appreciate by historical norms as we continue to head towards a more ‘normal’ market, rather than the over 6% seen over the course of the last couple of years. This is great news! Homeowners looking to sell their home will have buyers, as more buyers will be able to afford them!

Read more:

Things To Do This Weekend

February 28th, 2019

Steve Hollander – Hollander Real Estate

Clematis By Night – Thursdays
Clematis by Night is the place to be for great live music, a taste of mouth-watering foods and fun people all in the hip ambiance of an energized downtown waterfront. Centennial Square at the end of Clematis Street in Downtown West Palm Beach.
100 N Clematis St. – West Palm Beach, FL 33401  Clematis By Night

The Honda Classic – Now to Sunday
The Honda Classic brings the world’s best PGA TOUR players to Palm Beach County, providing a week of entertainment for the entire community.
400 Avenue of the Champions – Palm Beach Gardens, FL 33418  The Honda Classic

Friday Night Live Outdoor Concerts – Now to May 31st
This free weekly concert series features a diverse lineup of local and regional bands from country, jazz to classic rock and everything in between. Join us in Centre Court at Downtown at the Gardens and start your weekend on the right note! Seating is provided.
11701 Lake Victoria Gardens Ave – Palm Beach Gardens, FL 33410   Outdoor Concerts

West Palm Beach Green Market – Saturdays
The West Palm Beach GreenMarket is the area’s first and premier green market located on the scenic West Palm Beach Waterfront. You can shop more than 80 vendors featuring the freshest and most unique offerings including local produce, plants, exotic flowers, herbs, baked goods, gourmet foods, teas, coffee and much more.  Free parking in the Evernia Garage during Market hours.
Downtown West Palm Beach, Waterfront Commons  Green Market

Rib Round Up – Saturday
WIRK Rib Round Up Music Festival at Coral Sky Amphitheatre. Gates open at Noon.
9067 Southern Blvd – West Palm Beach, FL 33411   Rib Round Up

Nesting Sea Turtle Research – Sunday
Join Manatee Lagoon’s Manatee Masters and an expert speaker for a lecture to learn about a new topic each month! Advance registration is recommended, although not required.
6000 N. Flagler Drive – West Palm Beach, FL 33407   Nesting Sea Turtle Research

Renaissance Festival – Now through March 24th
Travel back in time to the 16th Century at the 27th Annual Florida Renaissance Festival at Quiet Waters Park. Over 100 Artisans welling their wares, Over 100 Performers to entertain, Kid’s Kingdom, Entertainment, Food and Drynk fit for a King! It’s a Fun Family Event for all ages! See website for more details. Saturday & Sunday only.
401 S. Powerline Road – Deerfield Beach, FL 33442    Renaissance Festival

Downton Abbey The Exhibition – Now for a Limited Engagement
Downton Abbey: The Exhibition, based on the beloved television show, transports you to post-Edwardian England, where the characters and the iconic house come to life. You’ll be immersed in the fascinating social history, culture, and some of the most memorable moments from the show’s six-season run.
575 South Rosemary Avenue – West Palm Beach, FL 33401  Downton Abbey The Exhibition

The Gardens GreenMarket – Sundays
At the Market, you can shop an abundance of just-picked, orchard-grown goods, a wide selection of seasonal vegetables and fruits, fragrant herbs, honey, homemade old-fashioned breads, pies, cheeses, sauces, handmade crafts and much, much more. This event is rain or shine.
10500 N. Military Trail – Palm Beach Gardens, FL 33410   The Gardens GreenMarket

Spring Training Season – Now to Sunday, March 24th
FitTeam Ballpark of The Palm Beaches – 5444 Haverhill Road – West Palm Beach, FL 33407
Roger Dean Stadium – 4751 Main Street – Jupiter, FL 33458
First Data Field – 525 NW Peacock Blvd. – Port St. Lucie, FL 34986

Palm Beach International Polo Season – Now to April 21st
The International Polo Club Palm Beach is the premier polo destination in the world, hosting the largest field of high-goal teams and the most prestigious polo tournaments in the United States. Polo enthusiasts descend upon Wellington, Fla., each winter season to enjoy their love of the sport in the most prominent and well‐equipped polo facility. Polo matches are open to the public, with a wide range of hospitality and guest seating that includes elegant grandstand viewing, field tailgating, stadium seating, field-side champagne brunch at The Pavilion, and exclusive sponsor boxes. Check calendar for events.
3667 120th Avenue South – Wellington, FL 33414   Palm Beach International Polo

Manatee Lagoon Tour – Now to May 31st
Join us on a walking tour of our visitor center and learn about manatee anatomy, physiology and the importance of GPS tracking devices, as well as the Lake Worth Lagoon. Meet at the manatee skeleton display at the entrance of the building. Recurring weekly on Tuesday through Saturdays. Check website for more details.
6000 N. Flagler Drive – West Palm Beach, FL 33407   Manatee Lagoon Tour

Take Advantage of A $50,000 Credit for Homeowners

February 27th, 2019

Steve Hollander – The Keyes Company

Study: What do home inspectors usually find?

February 26th, 2019

Steve Hollander – Hollander Real Estate
Florida Realtors®

LAS VEGAS – Feb. 20, 2019 – A study of 50,000 home inspections by Repair Pricer – a company that estimates repair costs for items cited in home inspection reports – found that some repair costs tend to appear more often.

Nearly 55 percent of home inspections nationally cited doors that needed adjusting, for example; and 54 percent lacked exterior caulking and sealant, which could leave the home susceptible to extensive water damage. And about 48 percent of homes lacked GFCI protection to minimize the risk of electrocution in areas like the kitchen or bathroom.

The most expensive home defects ranged in repair prices from slightly more than $1,000 to less than $10,000:

Top 10 common home defects – percentage of homes – price to repair

  1. Doors need adjusting/servicing: 54.9% of reports – $254 to repair
  2. Faucets and heads need servicing: 54.8% of reports – $273 to repair
  3. Exterior caulking/sealant missing: 54.5% of reports – $310 to repair
  4. Outlets or switches with deficiencies: 53.7% of reports – $248 to repair
  5. No GFCI protection: 48.0% of reports – $433 to repair
  6. Absence of or defective smoke alarms: 45.06% of reports – $378 to repair
  7. Cosmetic sheetrock cracks or nail pops: 45.02% of reports – $545 to repair
  8. Fixtures and/or bulb deficiencies: 40.5% of reports – $209 to repair
  9. Caulking, grout and sealer are missing interior: 33.9% of reports – $353 to repair
  10. Service panel deficiencies: 33.7% of reports – $298 to repair

While expensive repairs are less common, one in 10 inspections cite a roof nearing the end of its useful life as the most expensive common repair generally noted. However, one in five reports find a problem with window seals, which can cost over $1,000 to repair

5 most expensive repairs found – percentage of homes – price to repair

  1. Roof nearing end of its serviceable life: 9.6% of reports – $9,948 to repair
  2. Coil and condenser at end of serviceable life: 10.7% of reports – $5,818 to repair
  3. Heating unit exceeded serviceable life: 10% of reports – $3,798 to repair
  4. Water heater may need replaced: 10% of reports – $1,259 to repair
  5. Window seals failed or fogged: 20.8% of reports – $1,026 to repair

What should buyers do with inspection report information?

Repair Pricer says buyers’ first instinct is often to ask sellers to make repairs, but “this tactic can frequently backfire. Even if the seller agrees … they’re under no obligation to implement quality repairs and frequently execute the cheapest option or fix, potentially leaving the buyer with substandard work, no transferable warranty and no recourse.”

Seller repairs can also give buyers a “false sense of security, believing their agents have negotiated and built a home warranty into their contracts.”

The best tactic, according to Home Repair, is to ask the seller for a repair credit if appropriate under the contract, and hire a contractor after closing to complete the repairs to the buyer’s standards – not the seller’s.

© 2019 Florida Realtors®

Palm Beach County Local Market Update – January 2019

February 25th, 2019

Steve Hollander – Hollander Real Estate
Florida Realtors® – Realtors® of the Palm Beaches and Greater Fort Lauderdale

Now Available 804 Floret Drive

February 22nd, 2019

Steve Hollander – Hollander Real Estate

Things To Do This Weekend

February 21st, 2019

Steve Hollander – Hollander Real Estate

Clematis By Night – Thursdays
Clematis by Night is the place to be for great live music, a taste of mouth-watering foods and fun people all in the hip ambiance of an energized downtown waterfront. Centennial Square at the end of Clematis Street in Downtown West Palm Beach.
100 N Clematis St. – West Palm Beach, FL 33401  Clematis By Night

West Palm Beach RV Show – Now to Sunday
The Florida RV Trade Association’s latest in state-of-the-art RV technology, streamline designs, parts and accessories. Everything from inexpensive folding campers to multimillion-dollar custom-built land yachts will be available.
9067 Southern Blvd – West Palm Beach, FL 33411  West Palm Beach RV Show

Friday Night Live Outdoor Concerts – Now to May 31st
This free weekly concert series features a diverse lineup of local and regional bands from country, jazz to classic rock and everything in between. Join us in Centre Court at Downtown at the Gardens and start your weekend on the right note! Seating is provided.
11701 Lake Victoria Gardens Ave – Palm Beach Gardens, FL 33410   Outdoor Concerts

West Palm Beach Spring Home Show – Friday to Sunday
At our West Palm Beach Spring Home Show, we feature a wide selection of home improvement professionals in a fun, interactive environment to inspire, motivate and excite homeowners for their upcoming projects.
9067 Southern Blvd – West Palm Beach, FL 33411    Spring Home Show

Asian Cultural Festival – Friday to Sunday
Join us for a celebration of Asian culture including dance, music, food, martial arts, performances, tea ceremony, vendors and fun for the entire family! Hosted by America China Chamber of Commerce, co-hosted by United Creations Entertainment and Sweet Ginger Asian Bistro and sponsored by 123 Tea Trading and Angela Wang Florida Chinese Dance School.
700 S. Rosemary Avenue – West Palm Beach, FL 33401 – City Place  Asian Cultural Festival

Lake Worth Street Painting Festival – Saturday & Sunday
Celebrating 25 years on the street in beautiful Lake Worth! This festival was instrumental in giving me my start in street painting, which I am very grateful for. Boasting 100’s of artists and artworks, this event is one of the top street painting festivals in the USA.
Downtown Lake Worth – Lake Avenue & Lucerne Avenue   Lake Worth Street Painting Festival

Jupiter Seafood Festival – Saturday & Sunday
2 days of fresh seafood, live music, nautical vendors and family entertainment at Carlin Park.
400 Florida A1A – Jupiter, FL 33477   Jupiter Seafood Festival

Airboat and Swamp Buggy Show – Saturday & Sunday
Palm Beach County Airboat & Halftrack Buggy Show! Show your airboat, buggy, track, mud truck, side x side or four wheeler!
We will have buggy rides, kid’s games, amazing vendors, musical entertainment, food and beer! Come bring the whole family to help support local conservation!
4620 Summit Blvd. – West Palm Beach, FL 33415  Airboat & Swamp Buggy Show

West Palm Beach Green Market – Saturdays
The West Palm Beach GreenMarket is the area’s first and premier green market located on the scenic West Palm Beach Waterfront. You can shop more than 80 vendors featuring the freshest and most unique offerings including local produce, plants, exotic flowers, herbs, baked goods, gourmet foods, teas, coffee and much more.  Free parking in the Evernia Garage during Market hours.
Downtown West Palm Beach, Waterfront Commons  Green Market

Spring Training Opening Night: Astros vs. Nationals – Saturday
Opening Night at FITTEAM Ballpark of the Palm Beaches! Join fans from around the area to support the Nationals and the Astros as they kickoff the 2019 Spring Training season.
5444 Haverhill Road – West Palm Beach, FL 33407   Spring Training Opening Night

Renaissance Festival – Now through March 24th
Travel back in time to the 16th Century at the 27th Annual Florida Renaissance Festival at Quiet Waters Park. Over 100 Artisans welling their wares, Over 100 Performers to entertain, Kid’s Kingdom, Entertainment, Food and Drynk fit for a King! It’s a Fun Family Event for all ages! See website for more details. Saturday & Sunday only.
401 S. Powerline Road – Deerfield Beach, FL 33442    Renaissance Festival

Downton Abbey The Exhibition – Now for a Limited Engagement
Downton Abbey: The Exhibition, based on the beloved television show, transports you to post-Edwardian England, where the characters and the iconic house come to life. You’ll be immersed in the fascinating social history, culture, and some of the most memorable moments from the show’s six-season run.
575 South Rosemary Avenue – West Palm Beach, FL 33401  Downton Abbey The Exhibition

The Gardens GreenMarket – Sundays
At the Market, you can shop an abundance of just-picked, orchard-grown goods, a wide selection of seasonal vegetables and fruits, fragrant herbs, honey, homemade old-fashioned breads, pies, cheeses, sauces, handmade crafts and much, much more. This event is rain or shine.
10500 N. Military Trail – Palm Beach Gardens, FL 33410   The Gardens GreenMarket

Palm Beach International Polo Season – Now to April 21st
The International Polo Club Palm Beach is the premier polo destination in the world, hosting the largest field of high-goal teams and the most prestigious polo tournaments in the United States. Polo enthusiasts descend upon Wellington, Fla., each winter season to enjoy their love of the sport in the most prominent and well‐equipped polo facility. Polo matches are open to the public, with a wide range of hospitality and guest seating that includes elegant grandstand viewing, field tailgating, stadium seating, field-side champagne brunch at The Pavilion, and exclusive sponsor boxes. Check calendar for events.
3667 120th Avenue South – Wellington, FL 33414   Palm Beach International Polo

Manatee Lagoon Tour – Now to May 31st
Join us on a walking tour of our visitor center and learn about manatee anatomy, physiology and the importance of GPS tracking devices, as well as the Lake Worth Lagoon. Meet at the manatee skeleton display at the entrance of the building. Recurring weekly on Tuesday through Saturdays. Check website for more details.
6000 N. Flagler Drive – West Palm Beach, FL 33407   Manatee Lagoon Tour

Do You Know How Much Your Home Has Increased in Value?

February 19th, 2019

Steve Hollander – Hollander Real Estate

Last year we saw headlines about a possible housing market bubble, and many wondered if Americans still felt confident about the value of their homes. Recently, the 2018 Houzz & Home Study revealed:

Homeowners with mortgages have seen their home equity more than double since 2011, increasing to a record-setting $8.3 trillion in 2017.”

The average homeowner gained $16,200 in home equity between Q2 2017 and Q2 2018 according to the latest release of CoreLogic’s Home Equity Report.

Since 2011 home values have increased significantly throughout the country, with prices rising by 5.1% in 2018 alone. When surveyed, homeowners revealed the top four reasons why they felt their homes had increased in value.

  1. Desirable Location
  2. Improved National Economy
  3. Improved Local Economy
  4. Low Home Inventory in My Area

As we can see, not only does the data show that the homes have appreciated, but homeowners also believe they know why. Many have taken advantage of the opportunity to use their newly found equity to sell their current house and move up to their dream home!

2019 will be a good year for the homeowners that still want to take advantage of their home equity! CoreLogic forecasts that home prices will increase by 4.8% by the end of the year.

Bottom Line

If you are a homeowner who would like to find out your current home value, let’s get together to discuss the hidden opportunities in your home!