If you happen to be one of those people who are renting a Palm Beach home at the moment instead of investing in the abundant Palm Beach real estate market, many people will tell you that you’re actually making a smarter decision.  After all, why would you want to buy South Florida homes when the market is still vague and there’s no guarantee your home won’t lose any money?

If you are a renter, you’ll be pleased to know more people are doing the same.  In fact, research by the National Association of Realtors shows a considerable surge in renting this year so far.  So obviously renters are making the more intelligent decision by staying away from buying, correct?

Yes and no.  To its significant credit, the relative “commitment free” approach of renting is a huge perk.  Usual requirements when buying a Palm Beach home like insurance and mortgages become a moot point in renting.  In many cases, the responsibilities on a renter’s end are to pay the determined amount every month, the utilities and in some cases fulfill the length of the lease agreement.  Once that agreement ends, they can leave the home knowing they hold no kind of financial or legal responsibility for it.

In contrast, all that rent money that disappears does not goes towards any sort of investment the renter can benefit from, unlike owning a home in which the property itself becomes a financial asset that builds value over a period of time.  And also, that same rent money could have nearly if not completely covered the cost of a down payment on an inexpensive home.

If renting is working splendidly in terms of ensuring a roof over your head, food on the table and money to pay the bills and enjoy life, buying doesn’t make much sense.  Assuming you do have enough money to buy a home, when you’re evaluating the future of your living situation and are looking for something that you’ll eventually be able to sell for more than its original purchase price, buying remains the more lucrative choice.

Proving once again that Palm Beach follows its own set of rules, word on the Island is that George and Frayda Lindemann’s oceanfront residence at 60 Blossom Way has been sold for a price rumored to be between $70 and $80 million – and it wasn’t even on the market.

The 27,000 square feet Balinese-style mansion is situated on a 3.7 acre lot and has 320 feet of private beach.  The Lindemanns finished building their home, designed by Peter Marino, in 2000.

Clearly, the offer was too tempting to pass up. However, according to reports, the Lindemanns will stay in Palm Beach, possibly moving farther North and into a smaller, more manageable residence.

This comes just after the recent reported $75 million sale of Sidney Kimmel’s property just to the North. That property was listed with The Corcoran Group and had several competing bidders before selling to an anonymous buyer.

According to a poll conducted by the National Association of Realtors, 33 percent of all new and used homes purchased in 2007 were either vacation or investment properties. 

The NAR’s annual Investment and Vacation Home Buyers Survey reports the breakdown as 21 percent investment properties and 12 percent vacation homes, with investment home sales at 1.65 million and vacation home sales at 740,000.

65 percent of those buying vacation homes bought previously owned houses, while 71 percent of investment homes were bought used.

The survey also states that in 2007, the median price of a vacation home was $195,000 and an investment property about $150,000.  59 percent of vacation homes purchased were single family homes, 29 percent were condos, 7 percent townhouses and 5 percent classified as “other.”

About 60 percent of investment properties purchased in 2007 were single family homes, 20 percent condos, 11 percent townhouses and 8 percent “other.”

According to the survey, in 2007 the average vacation home buyer was 46 years old with a median household income of $99,100 and the property purchased was close to 300 miles from their main residence.

Investment home buyers were 42 years old with an income of $92,900 and the property purchased was an average of almost 30 miles from their chief residence.

Geographically, 19 percent of vacation homes were purchased in the Northeast. 16 percent were in the Midwest, 41 percent in the South and 24 percent in the West.

23 percent of investment properties purchased in 2007 were in the Northeast, 19 percent in the Midwest, 38 percent in the South and 21 percent in the West.

Falling in love with a locale is easy when you live in Palm Beach, agree real estate broker Scott Gordon of Scott Gordon Realty and Exclusive Estates, A Division of Scott Gordon Realty.

After all, they ask, how many places can you live where the weather is almost prefect every day, the landscape is breathtaking and the town is impeccably maintained?

"Our town is one of the most secure communities on the east coast, as well. As a winter destination, Palm Beach is easily accessible. It offers the finest shopping, resorts, dining and cultural and charitable events," says Gordon. "If you are raising a family, this intimate town offers some of the finest schools and family activities."

If you are mindful of living a quality lifestyle with first-class amenities and all the conveniences of a world-class community, Palm Beach should be tops on your list. Whether you are looking at your immediate plans or looking in to the future, real estate in the Palm Beach has maintained its value.

Over the years Scott Gordon Realty has established a strong presence in the Palm Beach and Manalapan real estate markets.

Gordon says they welcome inquiries from those who want to learn more about Palm Beach as a place to invest in high-quality properties while enjoying the community's remarkable lifestyle.

Scott Gordon Realty is in the Plaza Del Mar Shopping Center in Manalapan; call (561) 533-5888. For information, visit the Web sites www.scottgordonrealty.com and www.exclusiveestates.info.

The widely held belief is beachfront homes across South Florida in areas like Palm Beach are reserved exclusively for the wealthy.  For the most part, the belief is actually a fact.  Even the most basic of homes with none of the extra bells and whistles can still cost a princely sum that the average working family or individual cannot afford, as much as they may have wanted to.  That was indeed the situation about three years ago but times have changed quite drastically then.

In sharp contrast to the days when waterfront property values showed no signs of stopping, prices are now dropping due to the tough state Palm Beach real estate and the overall housing and condo market is in.  While tumbling prices aren’t the best of news, they aren’t necessarily all that bad either.  In fact, beachfront condos have gone down in price to the point that they’ve become believe it or not, affordable.  That same two bedroom luxury Palm Beach condo that was once asking $600,000 has now been reduced to less than $450,000.

Most people would say it’s common sense but always remember that buying waterfront property requires lots of money up front for taxes and insurance which is required in Florida.  If you’re concerned with possibly losing money in the short term, now is not the time to be buying a condo no matter how alluring the low prices may seem.  However, prospects look much better for the long term per analysts so that money you may lose now could be recouped as soon as next year.

Beachfront properties are a near guaranteed investment, especially in Palm Beach and South Florida where tourists and vacationers come year round.  While there’s still no telling how low beach condo prices will go, for the time being the prices are a lot more reasonable and worth taking at least a look at if living on the beach has always been one of those things you’d like to accomplish someday.