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What’s Happening With Governor DeSantis’ Ban On Chinese Homeownership In Florida?

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In May, Republican Governor Ron DeSantis of Florida signed a bipartisan law, SB 264, which banned certain Chinese nationals from buying property within the state as a means of avoiding “the malign influence of the Chinese Communist Party in the state of Florida.” 

According to reports from NBC, a group of Chinese immigrants that are backed by the American Civil Liberties Union and additional civil rights groups, have been working to invalidate the new law, and the Justice Department even backed their effort in an official court filing this summer. The Justice Department stated that the law is unconstitutional, however, a judge ruled against that challenge back in August and settled with an appeal. 

Many workers within the real estate industry have stated their disdain for the law, claiming that it’s ambiguous and is fueling a major risk for discrimination against Chinese buyers. According to the law, sellers who violate the restrictions knowingly could face up to $1,000 in fines and one year in prison while Chinese nationals who buy property in Florida face up to 5 years in prison and even higher fines. 

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Khalid Muneer of the Greater Orlando chapter of the Asian American Realtors Association recently spoke to the media regarding the discriminations and difficulties this law created. 

“Are we supposed to be FBI agents investigating people and asking them all kinds of questions?”

A veteran Florida real estate agent, Frank Lin, told the media that his business has been cut in half due to the fact that he has to turn down clients to comply with the law. 

Additionally, Chinese nationals who already own property in Florida “are required by the new law to register with the state’s Commerce Department, but they don’t even have a form yet or place or website, so that’s confusing everyone. Failure to register by 2024 could trigger fines of up to $1,000 a day,” Lin said. 

According to a Florida Commerce Department spokesperson, “a hearing is set for this week over a proposed rule on the registration requirement, the agency is dedicated to implementing SB 264 as outlined in law.” 

Muneer spoke further on the discriminations that this law has created and the potential hostility it could create. 

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“If somebody comes in and is Asian-looking, you’re automatically going to start asking questions about where you’re from, which never used to happen.”

Many Asian American community members are viewing the Florida law as resembling xenophobic “alien land laws” of the early 20th century, which were later deemed unconstitutional. 

The restrictions of the law cover both commercial and residential properties and apply to all Chinese nationals who aren’t US citizens or permanent residents and/or already owning property in China. 

“If somebody comes in and is Asian-looking, you’re automatically going to start asking questions about where you’re from, which never used to happen,” said Khalid Muneer, founder of Jupiter Properties in Central Florida and president of the Greater Orlando chapter of the Asian American Realtors Association.

“Is this racism? Is this stereotyping? We are very well aware of the fact that we can have issues. We can be accused of discrimination. Some of [my] associates with heavily Chinese or Venezuelan clientele have seen a major, major drop in business,” Muneer said.

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In recent months, some of the realtors are afraid to deal with [Chinese nationals] because they are looking at getting prosecuted for ‘not doing their job.’ But then again, are we supposed to be FBI agents investigating people and asking them all kinds of questions?” Muneer continued. 

“The law is upending peoples’ lives.”

Florida in general receives about 23% of all foreign buyers throughout the US, the highest percentage of any state, according to the National Association of Realtors. 

NBC reported that “five percent of Florida’s closed sales were to foreign buyers, according to a separate report from Florida Realtors. However, the bulk of Florida’s foreign buyers are Latin American, at 46%, and Canadian, at 24%. Among Chinese buyers, California is the most popular destination, drawing 33% of Chinese buyers to Florida’s 16%.”

“When you get a situation like this, where your main cash buyers are not allowed to buy, it does start hurting the market as well as sales agents who will depend on those sales for their living,” Muneer stated. 

Gregory Burge, an economist, said “ownership bans like Florida’s don’t make a lot of sense from an economic standpoint. Top talent coming from these nations would certainly involve families wanting to retain their citizenship in their home countries, and then facing the barrier of buying in Florida under the new law,” he said. “That could act as a negative factor for slowing economic growth.”

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Virtual Home Tours Have Taken Over The Real Estate Industry

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In the real estate industry, virtual tours of prospective properties have made it easy for agents and their clients to view and discuss future transactions. Beyond the obvious health and safety benefits of this technology, virtual tours have made it easy for clients located in different states or parts of the country/world to continue their real estate dreams from the comfort of their own home.

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Elon Musk And Twitter To Face Off In Court For The First Time This Week

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Lawyers for both Elon Musk and Twitter had their first chance to face off in court on Tuesday regarding whether or not the billionaire Tesla CEO should be forced to follow through with his $44 billion deal to buy the social media platform.

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US Homebuyers Investing In Florida Real Estate 

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The amount of homebuyers in Miami have tripled over the past couple of years. According to a new analysis by Redfin, in July the net inflow of Redfin users moving to Miami rose to 7,610 from 2,216 last year. 

Milagros Alvarez, a Miami real estate agent at Redfin, said that “the pandemic has brought even more out-of-towners to the area because so many people can now work wherever they want.”

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“Homebuyers are moving here from all over the map—Atlanta, Cincinnati, New York, Columbia, Mexico City, Pittsburgh and Philly, to name a few. The beaches, warm weather and low taxes are the major draws. Florida has also been much less shut down than other states during the pandemic, which some house hunters see as a positive,” said Alvarez. 

Alvarez also warned that the warm weather in Florida may seem like a main selling factor, but it also comes with its downsides. Miami is one of the most vulnerable cities when it comes to natural disasters or damages caused by weather-related events. 59% of Miami properties face some level of flood risk. 

Sea levels in Miami-Dade County are projected to rise by two feet by 2060, which would displace thousands of residents. The region also faces extreme heat risk, however, Alvarez explained that climate change hasn’t deterred Americans from flocking to the Sunshine state. 

“The homebuyers I talk to rarely mention climate change. Most of them aren’t concerned. A lot of people seem to have this idea that it won’t impact them in their lifetime, so it doesn’t need to be a consideration when buying a home.”

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Daryl Fairweather, chief economist at Redfin, warned that “the recent UN climate report shows that places like Miami will see the impacts of climate change within the next thirty years. Miami homebuyers should think about how they can make their homes more resilient to climate change and how their finances would be impacted if their homes lost value,” he said.

Sacramento, Phoenix, Las Vegas, Austin, and Atlanta have also been experiencing exponential rises in real estate investments, according to Redfin. The report also claimed that US citizens were mainly moving away from New York, San Francisco, Los Angeles, and Washington DC.

“Big, expensive cities normally lose the most residents, and that trend accelerated during the pandemic as remote work gave people the flexibility to leave expensive job centers for relatively affordable places.”

“Yet, a handful of the metros that experienced the largest outflows in July saw fewer people leaving than a year earlier—likely because many of the pandemic restrictions that made those places unattractive places to live have now been lifted,” the report said.

Investing in Real Estate

Tips For Investing In Real Estate Right Now 

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Now that the Covid-19 pandemic is beginning to slow down a little, many are beginning to take on new business endeavors. Real Estate investments have been on the rise within the past year, especially among first-time investors. So what should you know as you enter into your investments in 2021?

Many experts believe that first-timers should always find a mentor who they can trust to guide them in their initial investments.  Realty ONE’s CEO Kuba Jewgieniew, explained how now that more individuals are opting to stay home for work, looking at trends in the market has never been more important. 

“With fewer people returning to a physical office and many more people reevaluating their life choices, we’re seeing a resurgence in cities like Phoenix, Arizona, our headquarters’ home of Las Vegas, Nevada, and even once-less-popular markets like Boise, Idaho,” Jewgieniew explained. 

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“As more people move to these metros but also out to the suburbs to get a bigger space for less money, we’ll see even these areas become more popular, driving home prices higher.”

“An area with higher property values has the potential the yield a more lucrative real estate investment. So pay attention to on-the-rise hotspots—that can be a certain city or even a specific neighborhood—when deciding where to invest,” Jewgieniew explained.

Apartment buildings and boutique hotels have been predicted to receive a slew of investments in the coming fiscal year as well, which Jewgieniew thinks will lead to a larger presence of tech giants in our communities:

“I anticipate that retailers like Amazon will buy up these malls and convert them into distribution centers, creating jobs near the former malls. I believe that a lot of these apartments near the malls are going to get converted into condos to accommodate the workforce.”

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Jewgieniew explained that it’s important to build an organized business plan before making any official decisions as well.

“It’s not just about how much money you have and what income the building creates; you’ll need to factor external factors such as interest rates, vacancy rates, and occupancy rates into the equation too.”

Finally, Jewgieniew urged first-time investors especially to not get too excited by the thrill of investing in a new property, and take their time when it comes to reading all the fine lines. 

“A year ago, I would have said something different, but do not try to get in and get out quickly. Buy it, hold it long term, and focus on cash flow. Competition for these properties is intense right now, so you may have to pay a little more than you should to acquire one—and since construction materials are also extra expensive, it’ll be harder to turn a profit.”

Overall, just be smart with your money and make sure you’re making investments that will benefit you in the future. “If you’ve got a business plan in place and have a network of resources, like a knowledgeable real estate pro, then now could be a good time to invest in a flip property.”

Hidden Costs That All US Homebuyers Should Be On The Look Out For This Year

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According to market reports, almost half of all US homes on the market are currently selling within a week of being listed, and prices are continuing to climb in almost every part of the country. 

Many buyers, especially first-time buyers, need to be aware, however, of the multitude of costs that can build up during the final discussions of finalizing a home purchase. Experts claim that all prospective homebuyers should have a separate fund on hand specifically for closing costs. 

These costs typically include things like appraisal fees, property taxes, real estate agent commissions, homeowner’s insurance, title insurance, and more. Jessica Menton, a personal finance and markets reporter, recently discussed the best ways homeowners can plan for their future when it comes to looking for a home. 

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“Generally financial planners say that you should expect to pay somewhere between 3% and 5% of what your mortgage account is, give or take. So for a $300,000 mortgage that means setting aside $9000 to $15,000 for closing costs.”

Bill Gassett, a real estate agent in Massachusetts, stated that when you take out a mortgage, your lender will provide a document that details all of the closing costs involved in the property you’re interested in. Gassett recommends reading this document very carefully, because in some cases a buyer can ask the seller to cover some of the items listed. 

Menton claimed that usually most sellers will pay about 5% of the total sale price in real estate agent fees, commissions, and other expenses, and with most homes now selling well over their asking price, it’s likely more sellers will be less willing to budge on these listed fees. 

“I do sometimes recommend buyers hire an independent inspector, even though sellers will hire one to look for major issues, it can give buyers that extra security.” 

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“When making an offer, buyers typically submit 1% to 5% of the home’s value in earnest so the seller feels comfortable pulling the home off the market. That fee is usually held in escrow and applied to closing costs,” Menton says.

Gassett also warned that if you’re buying a home that’s a part of any sort of association, you need to get details in the beginning about special assessments that will appear down the line of owning the property. 

“Most people know that there’s a condo fee or an HOA fee, but they may not notice a special assessment coming up, where all of the sudden there’s a big extra expense. As part of closing, lenders get the home’s value appraised, because home prices are rising so fast, the difference between asking price and appraised value can now reach into the tens of thousands.That difference can put ardent buyers in a conundrum,” Gassett explained.

“The bank’s not going to do the loan unless the buyer puts more money down, so a lot of buyers are being forced to actually bring more money to the table than they thought they needed.”

Menton also suggests buyers hire a lawyer to get them through the closing period if they’re really nervous about additional costs. Don’t be afraid to pay an expert for their services so that you know the place you’re going to be living won’t end up costing thousands of more dollars than you expected. 

Americans Are Flocking To Florida To Embrace Post-Pandemic Life

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Florida has become one of the hottest travel destinations in the past few months as more Americans are receiving their Covid-19 vaccinations and ready to get back to a greater sense of normalcy. 

Beyond just vacationing, many Americans are looking to invest in real estate in Florida, specifically in Miami where social outings have been occurring constantly since the beginning of the year. 

Antonio Khoury is the Managing Director at Compass & principal of the Antonio Khoury Group. He recently was interviewed by Forbes Magazine to discuss this recent influx in Miami investments and travel to Florida in general. 

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The Antonio Khoury Group has been working for over a decade and has seen over $500 million in sales. Khoury said many individuals from Boston and New York have been adding Florida homes as a part of their dream real estate portfolios in this post-pandemic era that we’re all entering. 

 “We made an immediate expansion to the Miami market knowing that we could leverage our strategic alliances within Compass to best serve the needs of Northeast clients looking to purchase a home in the region. My real estate group has facilitated over $20M+ in successful closings in Florida in the past few months,” said Khoury. 

“The mass exodus during COVID-19 to South Florida, was certainly evident. I would argue that COVID-19 expedited plans of owning real estate in a warmer climate.”

Most of the new clientele in Florida, however, is made up of individuals who found themselves on the luckier end of the spectrum in terms of economic and social impact of the pandemic. 

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“The second largest contingency of buyers in the South Florida market are those who have benefited from their companies remaining virtual or have adapted to long term flexible work structures, i.e. young professionals from Boston and New York. These buyers have found the Miami market a much more attractive home base due to its perks. Things like more accessible luxury rental prices, more accessible luxury condo prices, private outdoor space, the warm climate, all the while in the same time zone as both Boston and New York are attracting these young professionals,” Khoury explained. 

Khoury is adamant that any prospective buyers for Florida real estate need to do their research before making any final decisions, especially if they’re looking into Miami. 

“Miami has many distinct neighborhoods, which are set for different lifestyles and personalities. Brickell, for example, is the area with the most high-rise full service residential buildings, offices, restaurants, and nightlife. Given the overall full-service aspect of the neighborhood, it has become the go to area for those seeking pied-a-terres.” 

Khoury recommends that any buyer who’s looking to invest in Miami for a second property should simply vacation there first to make sure that its really worth putting their money into. America is still very much in the middle of combatting this pandemic, so it’s important to remember that the market and social settings in all of these locations will change drastically in the coming months.

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US Housing Markets Expecting To Make A Comeback In 2021

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Based on current economic trends in parts of the United States, certain real estate markets are expected to thrive in the new year in what will likely be a stark juxtaposition to what a majority of the industry has witnessed this year as a result of the Covid-19 pandemic.

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Walmart Teams Up With Microsoft In A Bid To Buy TikTok 

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Walmart announced this week that they would be collaborating with Microsoft in a bid to acquire TikTok. Currently ByteDance, TikTok’s parent company which is based in Beijing, is nearing an agreement to sell its American, Canadian, Australian, and New Zealand operations in a deal that’s projected to earn the company up to $30 billion. 

Walmart and Microsoft are just one team placing a bid for the app in America, as many are looking to take advantage of buying one of the most popular social media platforms in 2020. Walmart spokesperson Randy Hargrove recently spoke with the media, and while he denied to comment on how the two companies would be dividing their ownership of the app, he claims this acquisition would be an amazing opportunity for both companies to compete against other giant corporations such as Amazon. 

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Walmart and Amazon have been competing as major “superstore” type retailers for years now. In fact, Walmart recently announced plans to launch its own membership program similar to Amazon Prime, called Walmart+, which will also include original content. 

“We believe a potential relationship with TikTok US in partnership with Microsoft could add this key functionality and provide Walmart a way to reach and serve omnichannel customers as well as grow our third-party marketplace and advertising businesses.”

Walmart went on in their statement to also claim that they were confident in their ability to meet both the expectations of current TikTok users, and the US government; who has recently been attacking TikTok for its potential sharing of personal data with China; which has not been proven. 

In the US, TikTok currently has around 100 million active users. When compared to the amount of users the app had in 2018 there’s an 800% increase in use. Daniel Ives, managing director and technology analyst, claims that there’s a 90% chance TikTok will accept the bid from Microsoft and Walmart, and the acquisition of the app will be a major step in Walmarts constant expansion of services. 

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This will not be the first time Walmart and Microsoft work together either. In 2018, Walmart announced a five-year “cloud deal” with Microsoft, allowing the retailer to adopt Microsoft’s Azure cloud infrastructure and include bundles in certain devices that would include Office 365 with every purchase. 

After TikTok was under major threat of being banned by Donald Trump and his administration, the app knew it had to find a new buyer so that the app would remain alive in one of its most lucrative markets worldwide. The Pentagon has already banned TikTok from being downloaded on any government-issued devices due to security concerns; the US House of Representatives and Senate were also ordered to follow suit. 

Despite the many allegations from Trump himself, TikTok has went on record multiple times that they have never shared personal data with China, it’s parent company, or any other company for that matter. They then explained how TikTok is run within each country it’s available, and all US user data is stored in the US. 

There’s no real timeline as to when TikTok will accept or deny Microsoft and Walmart’s bid, however, with the 2020 election getting closer, it’s likely the app will make a decision sooner rather than later in order to keep it alive. 

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What Real Estate Experts Are Predicting For The Rest Of 2020

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The coronavirus pandemic has obviously flipped a lot of businesses and industries on their heads this year. One of the biggest being the real estate market in America. At the end of every year real estate experts take to MarketWatch and other reputable platforms to tell clients and investors their predictions for the new year in regards to mortgage and real estate trends in general. It’s safe to say that the predictions made at the end of 2019 likely didn’t hold up, but that doesn’t necessarily mean all the current trends are bad.

One of the biggest predictions was that mortgage rates would stable out and remain relatively the same throughout the country. Instead, once Covid-19 began infecting Americans in February, sellers began pulling their property listings and buyers began pulling out due to fears of infection. This led to a decrease in the average mortgage rates in the country, dropping nearly a whole percent when compared to last year. As of right now, real estate experts expect that percentage to continue to drop as time and the pandemic progresses.

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One prediction that is proving to be true is the low inventory rates of homes to purchase in America. 2019 already saw a decrease in the amount of properties available for sale when compared to 2018, hence the prediction that this pattern would continue. As previously mentioned, many buyers and sellers have pulled out of potential listings due to health concerns; as a lot of real estate interactions need to happen in person. While it’s predicted that this pattern will continue, social distancing measures, facial coverings, and new technology that allows prospective buyers to take virtual tours of potential properties is keeping the industry alive.

Agents also predicted that a lack of affordability in properties would cause a lot of sellers to turn away from certain deals. This prediction is also proving to be true as home prices are currently increasing at a faster rate than there are buyers in the market. Again, the lack of buyers is mainly due to the pandemic, however, the prediction that this would occur shows that the industry is already in a tough spot when it comes to pricing. Lawrence Yun is a chief economist who recently spoke with MarketWatch about how he predicts this trend to turn around by the end of the pandemic.

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“Home sales should pick up with the economy reopening. But, new home construction needs to robustly ramp up in order to meet rising housing demand. Otherwise, home prices will rise too fast and hinder first-time buyers, even at a time of record-low mortgage rates.”

Another prediction that unsurprisingly came true was an increase in 3D/virtual home tours. Even before the pandemic became a reality, agents were predicting back in 2019 that virtual property tours and real estate deals would become more popular this year. Initially, they based this prediction on out-of-state/country buyers who were making large moves to new places but didn’t want to wait to start viewing properties. It’s predicted that this new technology will only grow to be more popular as the pandemic continues, but also after it ends.

It’s likely that once the coronavirus is no longer an issue, many industries will continue out implementing the health and safety procedures they were forced into to curve the spread due to how safe it makes everyone feel in general. The real estate industry specifically has had to deal with many national, and international, emergencies that have hindered sales and business, so when it comes to recovery, like all industries, it’s going to take time.