FIRPTA Changes Effective Today

Important Update on New FIRPTA Changes!

On December 18, 2015, President Obama signed into law the 'Protecting Americans From Tax Hikes Act of 2015'. This act includes significant changes to several tax laws, in particular important modifications to the Foreign Investment in Real Property Tax Act of 1980, better known as FIRPTA. These changes become effective, today, February 16th, 2016. Since approximately 25% of the real estate purchase in Florida involve a foreign buyer or seller, it is our effort to keep you apprised of these changes. As of today, all settlement agents are required to withhold 15% of the gross proceeds from any sale of real estate by foreign sellers.

 

Here is a summary:

1. Unless an exemption or reduced rate applies, the withholding amount has been increased from 10% to 15%.
2. If the property is NOT acquired as a residence, or the transaction exceeds $1 Million as a sales price, 15% of the gross proceeds MUST be withheld.
3. For properties being acquired by the buyer for use as a residence, and which are $1 Million or less, and for which the buyer signs a "Statement of Intent to Reside" the following rates apply: a) If the sales price is $300,000 or less. withholding is NOT required.  b) If the sales price is greater than $300,000 but not more than $1 Million 10% must be withheld. *please note the 10% withholding is based on the full amount of the gross proceeds.

There are 3 general ways of dealing with FIRPTA withholding:

1. Have the 15% withheld and file a non-resident income tax return for a refund in the year of the sale.
2. File an application for a reduced rate of withholding from the IRS on or before the date of closing. This is also known as a "Withholding Certificate". The seller then is required to file a non-resident income tax return the following year.
3. The buyer can choose to sign a "Statement with an Intent to Reside" on properties $1 Million or less which triggers one of the steps listed above in #3. *Please note that under the current law, the buyer assumes the risk, as they are referred to as the 'withholding agent'.  It is then mandatory and required that the seller file a non-resident income tax return and pay any tax due. [This could incur penalties for underpayment if applied.]

If you're not confused yet, you're one of the few who isn't. Better yet, I suggest you contact a professional in U.S International Tax Services. We at The Harris Peppe Team recommend Roberge Poskus International. You can go right to their website for additional information by clicking here: Roberge Poskus International.

 

We welcome your comments and feedback. Do you believe we will see any negative fallout from this new law? What are the positives and negatives in your opinion? Remember to call a real estate professional when considering a purchase or sale. With well over 80 years combined experience in the Naples Real Estate market, The Harris Peppe Team, members of The Coldwell Banker Previews International real estate company, is the largest full service real estate company in the world.

Local knowledge, Global connections. Call us today 1-239-370-0574

 

Thank you, and make it a GREAT day,

 

The Naples Real Estate Blogger

 

 

 

New Luxury Listing with a Guest House!

Welcome Home to Your New Estate Residence

 

Exquisitely appointed home plus guest house situated on 2.5 acres of lush tropical gardens; offering the utmost in privacy, quality of life and convenience. Natural palms and beautiful fountains abound in this fully fenced property. From the moment you enter the electric gates onto this well manicured estate you know you have arrived at a perfect place to call home. The main home features three spacious bedrooms plus a den, 3 full baths, a formal and casual eating and living areas. The gourmet kitchen is top-of-the-line, boasting an island design, granite and custom cabinetry, a coffee bar and a Viking range.   



There is an advanced home security system, an RO water filtration system with a 200 gallon reserve, a back-up generator which will run the entire home and pool, and too many other upgrades to name. The attention to detail is beyond reproach, evident in the soaring tray and coffered ceilings, moldings and shutters throughout. The master suite measures 18' X 21' and leads to the lanai as well as a luxurious master bath and 2 walk-in closets! The warm wood flooring enhances this homes beauty.

 

The enclosed salt water pool with thermal ledge and brand new spa with "moat" are also fully automated and can be monitored online. A video of the home can be viewed here: New Listing Naples Florida.  ~The guest house has 3 full bedrooms and a garage, and is strategically positioned on the property to insure privacy for both your guests and the main home. The total square footage of this fabulous residence is 9,364 sf which includes the guest house and 3 car parking, and 500+ covered lanai!

 

This wonderful new listing is being offered at $1,199,000. and you can call today to schedule your private showing by contacting Sam Wells, of The Harris Peppe Team at Sam@NaplesRealestate.com or 1-239-404-4889.

 

Thank you, and make it a great day!

 

The Naples Real Estate Blogger

 

 

 

 

 

 

Florida Tops List of International Buyer's Destination!

25% of all international buyers in the USA purchase in Florida!

In a recent article about international buyers, published in the Naples REALTOR magazine, several statistics were shared that I found interesting. Did you know that Florida accounts for nearly 25% of all international sales in the USA? Miami heads the list of destinations, with 21% of the 25%, but the Naples-Marco Island real estate market remains strong at 6.3% of the closed sales in the last 12 months. Canadians, for many reasons select Florida, and Naples is their #1 destination with 13% of Canadians purchasing in Collier County. So far year-to-date 2014 Canadians make up over 60% of our non-domestic closings followed by Germany at 12% and the U.K. at 8%.  International buyers are playing a more important role in our local real estate market and they are drawn here for a myriad of reasons. Most state the weather of course, but other factors include our culture: arts, entertainment and fine dining; as well as the value of housing.

 

 

Coldwell Banker is the most recognized real estate company in the world. We have offices in 51 countries and territories. Given the impact of our presence on the world stage, it makes perfect sense that many of these international buyers trust the name they are most familiar with when doing business. Call us today and let us tell you what we are doing to reach out to our international friends and colleagues. I think you will also be impressed to know that our websites can be translated into 19 languages!  239-370-0574

 

Thank you, and make it a great day!

 

The Naples Real Estate Blogger

 

 

 

 

Happy Living Survey

Are you in a "happy place?"

Photo of Naples Pier can be enlarged by clicking on picture

"Are you in a “happy place”? ~Sounds like a funny question, but in the most recent “State of American Well-Being” report, the Gallup-Heathways ‘Well-Being Index’ measured Americans perceptions of happiness! Both physical and emotional health, as well as healthy behaviors, work environment, social and community factors, financial security, and access to necessities such as food, shelter and health care came into play when determining what American cities could be deemed "happy"! *Gallup conducted 500 telephone interviews every day throughout 2013 nationwide. Guess who turned up in the Top Ten? That’s right, Naples ranks number 7 for ‘happiness’ out of all American cities! Topping the list was Provo, Utah at number one, and rounding out the top 10 is Lincoln, Nebraska. Naples was the only town in Florida to make the top 15 list! Click here is you are interested in the full State of American Well-Being report.

If you are interested in being in a ‘happy place’ please call us today. 239-370-0574239-370-0574 We would love to show you beautiful homes in Naples Florida, which I more affectionately call paradise!

Thank you, and make it a great day,

The Naples Real Estate Blogger

*also reported in Realtor magazine April 2nd, 2014

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What is PREVIEWS?

Coldwell Banker Previews International 

Celebrates 80th Anniversary!

 Coldwell Banker Previews International is happy to celebrate its 80th anniversary this month. Paying tribute to the legacy started in 1933 by the PREVIEWS founder, Henderson Talbot. Talbot was a real estate agent with ties to Hollywood who introduced the use of motion picture to market his high end listings. Imagine his vision, utilizing film, allowing international buyers the ability to "preview" exclusive listings around the world!  Coldwell Banker has always been ahead of the curve in marketing luxury homes. To read the full article about this milestone click here: PREVIEWS.   

For information about the Previews market in Naples Florida, please contact us today. 239-370-0574.

Thank you and make it a great day!

The Naples Real Estate Blogger

Beachfront Home on Gordon Drive Sells for $7.6M

The Nautilus

Naples, FL (May 15, 2013) Coldwell Banker Residential Real Estate is pleased to announce that Chip Harris & Michele Peppe of The NaplesRealEstate.com sales team located on 5th Avenue South in downtown Naples, has sold the beach front estate at 3630 Gordon Drive for $7.6 million dollars. They represented the seller in the transaction. The 8426-square-foot home is in the exclusive Port Royal Beach Estates neighborhood. The centerpiece of the home, a dramatic 4-story spiral staircase, is what prompted Peppe to market the home as 'The Nautilus' capturing the attention of thousands of online views of the home over the course of their listing. When asked why the seller selected them to market his home, Michele replied, “You don't win today's games with yesterday's home runs. Today's luxury real estate market is a whole new ballgame and incumbent leaders are not keeping up with technology. The seller is very technology oriented and he appreciated our dedication to including the Internet and social media in our marketing campaign.”

The Coldwell Banker brand dominates the luxury market worldwide, while Chip and Michele's web presence dominates the local market. Peppe went on to say, “NaplesRealEstate.com isn't a grand slam, it's like hitting a grand slam in every single game...what seller wouldn't want to be part of that exposure?”  Chip added, "The last 3 beach front homes in Naples, in the past 6 months, have all been marketed by the Coldwell Banker Previews brand"!

*Presently there are 41 homes being actively being marketed in the Port Royal neighborhood with list prices at or above $5 million. There have been 15 closed sales in this community year-to-date, nine of which sold for $5 million or more. Presently there are 8 homes for sale on the beach in the 34102 zip code ranging in price from $9.5 to $19.9 million. Two of the 8 are located in the Port Royal area.

Chip Harris and Michele Peppe and their sales team have over 50 years combined real estate service experience exclusively in Naples, Florida. The team members are certified Coldwell Banker Previews International Property Specialists. In addition, members of their sales team cater to an increasingly international clientele and speak German, French and Spanish. Recently they were named in the 'Top 30' agents in the state by Coldwell Banker Residential Real Estate. The name Previews® has been synonymous with luxury real estate since 1933. Previews sells $70 million+ dollars of luxury homes every day! This exclusive group of luxury certified Previews property specialists consists of approximately 10 percent of the 82,000 Coldwell Banker® sales professionals located in 3100 offices in 50 countries and territories worldwide. Coldwell Banker Residential Real Estate is a leading full-service residential real estate company with more than 80 offices and 4,900 sales associates serving Florida, with eight offices in Southeast Florida. Coldwell Banker Residential Real Estate is a subsidiary of NRT LLC, the nation’s largest residential real estate brokerage company.

Congratulations to my entire team at NaplesRealEstate.com for the efforts involved in getting this sale together!

Thank you, and make it a great day,

The Naples Real Estate Blogger

This is in part, a copy of a press release, submitted to various news agencies for release post closing. *data derived from SunshineMLS and is deemed accurate and reliable.

Questions and Answers About the Luxury Market in Naples Florida

Luxury Magazine Interview

I was recently asked questions for an upcoming luxury magazine article and thought you might be interested in a sneak peak of my answers!

What has happened with sales in the upscale market in your area in 2012?

"Luxury buyers in Naples are taking advantage of the recessionary prices and     making purchases. There was definitely a 'pent up demand'--people watched the market closely and waited for prices to level off before making buying decisions. Both investors and end users have been active in this luxury market segment."

What is happening with prices and with inventories?

"Sales in the $1 million plus category in Naples are up approximately 10% in Naples in the past 12 months compared to the prior 12 month period. Inventories are down considerably which is driving up prices. I've been calling it the 'trickle up effect' for over a year now; as we run out of inventory in the lower price points, the new listings are testing the market at higher prices and due to the diminished inventory many sellers are getting their prices!"

What types of properties and locations have been in particular demand?

"Waterfront is hot hot hot! There are few places on earth which affords the quality lifestyle offered in Naples Florida where you can actually buy a 'livable' home on the water with gulf access for under $1 million dollars. Naples most exclusive boating community, Port Royal, has an average sale price presently of just under $7 million, but residences in this neighborhood can be as high as $20 million or greater. We are also seeing a demand all along the coast, both in single family homes as well as the gulf front condominiums where beach access is a crucial buying feature. Additionally, the community downtown known as 'Olde Naples' is always popular with folks looking for a more urban lifestyle--walking distance to world class shopping & restaurants, bistros, sidewalk cafes, the live theater, beautiful parks and of course, the beach! Recently one of my colleagues here in the Naples Coldwell Banker Previews office sold a home in Olde Naples directly on the beach for $16 million! Several of the high end golf course communities, which up until recently had a huge over supply, have now seen a more balanced market and sales again are brisk."

Where your buyers are coming from?

"As always, our buyers mainly hail from the midwest, however here in Southwest Florida the New York metropolitan area recently surpassed other US feeder markets with the highest number of incoming flights. We are also seeing a lot of buyers heading over the Naples from the east coats of Florida--buyers looking for an easier pace. Interestingly enough, we have also seen some potential California buyers coming to Naples! Without question Naples is well represented by the international buyer as well. Canada tops the list, primarily the greater Toronto area, but my partners and i have sold homes this year to buyers from the U.K., Germany and Scotland. One interesting tidbit, I track our website traffic and in the past 90 days Russia has been in the top 10 countries by page views. I don't remember Russia ever being in the top 20 before this year. Also, we are seeing web traffic on our blog from both India and China!"

Any insights you might have gained about why they are buying and why they choose Naples vs. other locations?

"People buy in Naples because of the amenities: Nearly 100 private golf courses, 10 miles of pristine beaches, excellent fishing, boating and unbelievable natural resources. Naples was recently coined 'The Best Small Art Town in America'--we have a Philharmonic Orchestra, and amazing museums and galleries plus live theater and internationally acclaimed art shows and festivals. There's a gourmet restaurant if you want to go out every night of the year and you wouldn't eat at the same one twice, and our world class shopping rivals Rodeo Drive. We also have great healthcare and hospitals. Overall, an incomparable quality of life. Also, I might add that the weather in Naples, because of the gulf stream, is typically 5-10 degrees warmer in the winter than our competition---"

How does the upscale market in your area compare to other Florida markets?

"Most people look at Naples as a 'bargain'--just look at the prices in other cities and compare! Naples is a 'class act'...we cater mostly to CEOs, business owners, corporate executives and Fortune 500--There's not a lot of "celebrity" going on here. People are drawn to Naples because it's low profile. It's still a small town with big city amenities."

Regarding next year, what do you anticipate for sales and for prices? Can you comment on any underlying dynamics that will contribute to a strong market in 2013? Are there any potential wildcards that might change the direction of the market?

"There is always a chance that the fiscal uncertainty in Washington could put a wrench in our recovery. As we have seen in the past, wealthy people don't really need to buy....and they are usually very conservative, especially with second and third home purchases, which is our predominant market. On the flip side, they could take their money out of other investments and buy real estate instead. I prefer that scenario, as I have always been an optimist."

Do you have any questions about the Naples Florida Luxury Home Market that you would like to ask The Naples Real Estate Blogger? If so, kindly submit them to:  blogger@naplesrealestate.com

Thank you, and make it a great day!

The Naples Real Estate Blogger

Coldwell Banker Previews International Announces the 30 Top Luxury Agents in Florida!





The Florida Top 30!

 

Chip Harris and Michele Peppe were recently recognized by Coldwell Banker Previews International as being in the top 30 agents in the state of Florida for Luxury Homes sales. Recognized as a world leader in the marketing of exceptional properties, Coldwell Banker Previews International handles on average over $70 million in luxury home sales every day! Coldwell Banker represented 5 of the 10 priciest homes in the U.S. in 2011. The most expensive celebrity property in the U.S. listed at $150 million was sold by Coldwell Banker Previews International. Previews works with more celebrities, dignitaries and affluent buyers than any other Florida real estate firm. Chip & Michele are both Certified Previews Specialists. Together they boast over 50 years selling the Naples luxury lifestyle to satisfied buyers as well as representing some of the most beautiful properties in Naples Florida. Can you find them in the photo above? [click on photo to enlarge]

Please contact them directly if you are interested in a luxury home experience. 239.370.0574  ~Also, their web dominance includes a website catering to the high-end market and provides lists of all million dollar plus properties in Southwest Florida. Log onto: Naples Previews for additional information. 

Thank you for being a part of Chip & Michele's success!

The Naples Real Estate Blogger

Luxury Market Report 2012

Coldwell Banker Previews International released their 2012 Luxury Market Report yesterday. I thought I would share some of the interesting facts that were covered in this report. Included in this publication are Global Points, Domestic Overviews and notable achievements by the Previews brand.

Coldwell Banker has 83,000 associates in 3,100 offices in 51 countries and territories. With affiliates in every corner of the globe, Coldwell Banker has established itself as a leader in the world of luxury real estate.  According to the National Association of Realtors, total sales volume to international buyers in the U.S was estimated at $82.5 billion for the 12 months ending March 2012 -up from $66 million for the prior 12 months. Canada is responsible for the majority of the international sales, but we are currently seeing buyers from Russia, China, Brazil and the Middle East. Chinese buyers are now the 2nd largest buyers of homes in the U.S. mainly because of the power of the yuan and their country's restrictions on property purchases. Presently there are nearly 960,000 millionaires in mainland China. Brazilian buyers are purchasing condos and homes in the Miami area due in part to the rising real estate values in their country, and the fact that their currency gain against the U.S dollar increased 45% since 2008!  According to The National Association of Realtors, overall activity of foreign buyers is up 24% this year over the prior 12 months. Florida, and specifically the Miami area, has been a big contributor to that. California and New York continue to lead the U.S. in luxury sales, while other areas such as Greenwich and Chicago also attract affluent buyers.  Most international buyers pay cash, therefore the tighter lending restrictions have not effected them as much. Many of the buyers are "multi-generational", by that I mean they select high-end homes for themselves, as well as for their parents and children to use and enjoy. There is a big demand for modern styling and architecture. Amenity rich communities which offer natural resources such as nature trails and boating, exercise facilities and jogging paths are a big draw for the Europeans. Naples Florida ranks number 8 of the top 10 cities with the highest number of multi-million dollar sales, and number 9 of the top 10 markets in the U.S. with listings priced at or above $10 million. 

Previews agents participated in more than 13,5000 transaction sides of homes priced at $1 million or more in 2011. On average, Coldwell Banker Previews International handles $70.1 million in luxury sales every day! We continue to be an integral part of the strength of the luxury market worldwide.

Please let us know if you would like additional information about Luxury Real Estate in Naples Florida. The Harris Peppe Team considers it a privilege assisting you with all your housing needs. 239.370.0574

Thank you, and make it a great day!

The Naples Real Estate Blogger

  

Coldwell Banker Previews International

• The Coldwell Banker Previews International program has been a world leader in the marketing of luxury homes since 1933. Previews was acquired by Coldwell Banker Real Estate in 1980. This exclusive program is the only program of its caliber in the world. Previews does not sell art, Previews does not sell antiques, Previews does not sell wine...Previews sells luxury real estate around the globe. The elite group of certified Coldwell Banker Previews Property Specialists make up about 8% of the Coldwell Banker agents worldwide. In 2010, these agents participated in nearly 14,000 transaction sides of homes priced at or above $1 million! The average price for luxury home transactions listed and/or sold by the Coldwell Banker Previews International program in 2010 was $1.85 million. On average, Previews handles $68.9 million in luxury home sales every day*!
• Ultimate Homes Magazine: "In 2010, Coldwell Banker was the only brand to sell one of the top 10 most expensive homes in The United States, 'Le Belvedre'...listed at $85 million. Previews has a track record of being selected to represent some of the world's most exquisite properties, including 3 out of 5 of the priciest homes in the U.S."
• Zillow.com: "3 of the top 10 homes that sold for $12 million or more in 2010 were listed by Coldwell Banker Previews International**".
• Forbes.com: The most expensive celebrity real estate in the US, 'The Manor', was listed by Coldwell Banker Previews International at $150 million***!
• Wall Street Journal: In a recent survey of Wall Street Journal subscribers, Coldwell Banker Real Estate ranked #1 among all measured real estate companies they would consider using for future real estate transactions****!

If you or someone you know is considering a luxury home purchase in Naples Florida, or if you are thinking of selling a luxury home, don't you owe it to yourself to interview the leading luxury real estate brand in the world? Please call a member of The Harris-Peppe Team today for a no obligation consultation. 239.370.0574

Thank you, and make it a great day! The Naples Real Estate Blogger

*data based on closed and recorded transaction sides of homes sold for $1 million or more as reported by the U.S. Coldwell banker franchise system for calendar 2010.

**Ultimate Homes Lists of Most Expensive Homes in the U.S. 2010 ***Zillow.com December 20, 2010 ****Forbes.com January 14th, 2011