The last addition to the collection of tax reform propositions is pending review from the Taxation and Budget Reform Commission. It would repeal most of school property taxes, replacing them with the inclusion in the state sales tax of SERVICES that are mostly exempt at the present time.
In 1987, the taxation of services lasted for only a few months and was repealed by the Florida legislature under strong opposition by business interests.
The proposal was sponsored by Commissioner John McKay, a former Florida Senator. It came immediately under attack by business interests who claim that it would mainly affect small business and cause the losses of thousands of jobs. They claim that very few states levy taxes on services; service business could be easily transferred to neighboring states. The Coalition for to Protect Florida’s Economy (which is said to represent more than 200,000 employers) is strongly opposing the proposition.
The proposal would allegedly cut total property taxes by about 40% and has received some approval by different groups who claim that it would be of great relief for businesses who now pay a disproportionate share of property taxes.
It would apparently target areas that are now exempt, such as legal fees, accounting, printing, transportation, automobile repairs, while retaining the non-taxation of food, medicine, electricity and some essential services.
This new proposal is aimed at correcting the shortcomings of the now legislature- approved tax reform that will go on the ballot on January 2008, which do not provide major relief to owners of non-homestead properties, as well as business and investment properties owners.
My opinion: Reduce taxes, reduce taxes, reduce taxes . Not by swapping creativity, not by increasing one tax to reduce the next one, not by ignoring the main issue. Which is: Reduce expenses, reduce expenses, reduce expenses.
Our bubbling bureaucracy, our absurd multiplication of services, our unreachable goals of pensions and benefits for the ever-increasing class of public employees is the real issue and the real problem to be solved.
Our teachers are the lowest paid in the US, but most of the proposals to reduce property taxes will further compromise schools budget.
However, we still have a ridiculous amount of small cities with their own water departments, fire departments, mayors, commissioners, parties, cultural departments, and so forth. And the prospect of pension plans for this whole new class is an ominous threat on our future.
Is this an economical way to spend our money? Citizens’ consensus is NO.
Magic cannot be performed without real reforms. Our public service expenses have not created a better school system (Florida has one of the worst in the whole country), has not improved citizens’ quality of life. It has just gobbled the billions of dollars of property over-taxing and will not give up a penny without a bitter fight. As an example: Some cities have compensated some of their mandated taxes roll-back by charging for previously free services. Did anybody notice?
Is anybody going to put together a proposal that addresses the real causes of the problem, not its consequences?
One More Florida Property Tax Reform Proposal!
June 13th, 2009Investing In A Second Home In Florida
May 10th, 2009
While for some, buying a home is a life changing event and big financial investment, surprisingly there is about one tenth of home owners that belong to the increasingly mobile upward class and look to invest in the real estate market beyond their first home. The attractive rates of interests, as well as, very strong home market scenarios and the larger incomes of this working class of people is prompting them to go for a second home.
Second home is a wealth building strategy for a majority of people. So, investing in these properties that might fetch some rental income could be a great deal in the long-term. In this case vacation homes are the best places of investment.
For those that are prompted to purchase a second home to use as a holiday retreat, looking to invest in vacation resorts or retreats is a beneficial task. They can be secluded or within a community and it is a personal choice as to which will best suit the interests of the buyer. Inquire about the prices of properties in secluded areas, as well as, crowded communities before making a final decision.
Purchasing a second home has never been so easy, thanks to federal laws. Having said so, one needs to make a smart decision. Approaching a real estate expert is not a bad idea as he can assist you on the financial as well, as technical considerations,of buying a second home.
If you have a plan of only investment, ask the expert for different options of property management. If you aim to have some standard rental income from your second home, location becomes very important. It is better to approach an expert in the place that you have decided to buy who knows the intricacies of the laws in that respective place.
Please bear in mind the tax implications of renting a home (even if the house is rented for 15 days in a year you need declare the income from rent, as well as, be ready to pay tax.) Approach a tax consultant and know its implication on your future finances.
Vacation retreats or vacation rentals, it entirely depends on you as to what purpose you want to buy a second home for. However, you need to take time and do diligence and need to look at every property that you may want to buy, with a what-will-it-be-tomorrow perspective and invest in one that promises appreciation.
Worried About Being Sued After Foreclosure For A Deficiency Judgment?
May 1st, 2009
If you own more than one home and are facing foreclosure, you are probably worried about the bank going after your second home if you are unable to save the first. Bank representatives and armchair foreclosure experts will threaten you with being sued again and losing your other home, having your other assets repossessed, and maybe even having your bank or retirement accounts stolen or wages garnished. Fortunately, however, many of these predictions will never turn into reality.
The issue of foreclosure does need to be taken seriously, though, and finding out your options should be the first consideration. The first thing you should do is consider various other solutions instead of just letting a house go through the foreclosure process. Try and get as much time as you can from the bank, even if a sheriff sale is coming up; the bank can postpone any foreclosure proceedings in the local courts or cancel an auction to give you more time to work on a solution.
You might want to consider trying to list your house for sale, even if you have to do it with a short sale and convince the bank to take less than the total amount you owe on the loan. Otherwise, if there is really no way to save the home and the lender is unwilling to do a short sale, you can offer the bank a deed in lieu of foreclosure, which will, upon the bank’s acceptance of the offer, stop foreclosure and allow you to give the house back to the bank instead of going through the entire legal process and seeing your house auctioned off by the county.
But if the house does go into foreclosure and you do lose it to a sheriff sale, this does not mean the bank can go after your other house or any other assets you still possess. A number of different requirements must be met for a bank to try and sue you again after the foreclosure. Most of these requirements are easy to meet, but the last one usually guarantees that the bank will not take the time to pursue another lawsuit to go after your other personal items or additional homes.
First, the house has to sell at the county auction for less than the total amount owed on the loan at the time of the sheriff sale. This is usually pretty easy to meet, since the bank will have added thousands of dollars in fees so that no one in their right mind (not even the bank) would pay that much for the house. Usually, it is the foreclosing bank that places the only bid on the property, and they bid the minimum amount, so the house is likely to sell for far less than the total amount owed. The bank will end up with the property and a convenient write-off for the lost portion of the debt.
Second, your state has to allow deficiency judgments in the case of foreclosure. Not all states allow this in their foreclosure laws, so make sure you look up your law and find out if they can sue you and under what circumstances. Even if the lender is allowed to pursue another lawsuit, the type of foreclosure used, whether judicial or nonjudicial, can also be a determining factor in how difficult it will be to start the lawsuit and how it must be pursued.
Finally, you actually have to have something of value that the bank would want, usually some highly liquid asset the bank can easily seize. That does not mean having another home, to be clear. If the bank got nothing back from you on this foreclosure, what makes you think it would be worth their time to go after your other home? Would they get anything for their time and money, or would they most likely just get stuck with losing even more money when the home sells for too little at an auction to pay off even the existing mortgages, let alone a deficiency judgment?
So, maybe the bank could go after your other house after you lose one. But, in practical terms, banks almost never do this, since it just is not worth their time. It costs them more to hire attorneys to sue you for the original foreclosure, then sue again after that for a deficiency judgment, then sue you again for foreclosure on your other home because of nonpayment of the deficiency judgment. And in the end, they will probably still end up with nothing to compensate them for their total expenses.
Portability of FL Save Our Homes Assessment and Eventual Cap Removal
April 22nd, 2009
The average citizen and resident of the State of Florida knows little if anything about legislation and initiatives currently being proposed to greatly alter their lives. When I found out about the Save Our Homes Amendment, my first reaction was that on its face it sounds good.
That however is the danger as special interest groups (and the legislators serving them in return for…) often use clever language to conceal and obscure their true intent and what they desire to accomplish. Nowadays the powerful serve themselves, not we the people. Therefore we the people must be all the more knowledgeable, studied, and astute.
When I wrote the chairman of the Save Our Homes Amendment who pioneered the legislation, Lee County Property Appraiser Ken Wilkinson, I was pleasantly surprised when he wrote me back within a day. What however was a bit disheartening was when I asked for the direct link to the legislative amendment itself, Mr. Wilkinson only provided me a link to the petition.
Nevertheless I read the petition, which on its face sounds good for Florida homeowners (especially those who would like to move elsewhere in the state and buy a new home). What troubled me however was the last sentence on the petition, which reads:
“Thereafter the new homestead property shall be assessed as provided herein.”
That being said, how come nothing else was written or provided therein pertinent to that clause? What is coming hereafter that we homeowners need to know about?
Omissions and distortions are the modus operandi of slick tongued legislators not desirous of letting we the people in on their true motivations. Purporting to serve the people, they talk sweet but the rest that remains to be seen is always yet to be discovered.
Here are some of my recent discoveries (and the search and rescue of the Florida homeowners continues).
John Sebree, Vice Pres. of Public Policy for the Florida Association of Realtors, recently wrote my sister saying:
“The calculators you are looking at are not taking into consideration the revenue cap on local govt ad valorem taxes that can be collected from this point forward. Personal income has increased an average of 4.2 percent each of the past ten years and the Gov just signed a bill that limits the amount of taxes a city or county can collect to that same personal income growth factor. That is a point the media refuses to acknowledge.”
So in other words there is a move to not “limit” property taxation to annual 3% increases, but move it up to the new Governor approved and permitted 4.2% now allowable.
Mr. Sebree further wrote: “The US Constitution would prohibit portability in the way we want it. It appears portability would violate the US Constitution’s ‘right to travel’ clause. We are working on a way to make it constitutional and that can be added in.”
The million-dollar question however is who is “we” — certainly not the taxpaying homeowner. I dare say “we” is the tax assessors and county property appraisers working for them.
Mr. Sebree assured my sister in her 50s who can’t afford to move and pay in an enormously increased tax bracket on a new home: “If you stay in your house forever you are still protected under this new language (as you said, assuming it even makes it on the balot and passes). The amendment as written grandfathers you in so you never lose your Save Our Homes if you stay.”
Why than is Save Our Homes not saying that? The “if you stay” part is huge for homeowners across the state on a fixed and limited income who can’t afford massive taxation increases on their home. Consider the retired elderly, ill, single-parent, and those who are unemployed. If the elderly or ill need to move closer to family for home health care; the single-parent marries and moves elsewhere; and the unemployed relocates to take a job—either of these scenarios means much higher property taxes and the elimination of the 3% cap.
This therefore becomes a huge deterrent for the above mentioned when economically, medically, occupationally, and maritally considering their options.
My guess is those behind this legislative amendment are preparing to move into a new home and/or relocate to their dream houses before the property tax cap is removed. While the “super exemption” may help a bit get folks into a home, after 5 years in that home expect the taxes to increase dramatically. That isn’t being understood by most people.
Other legislation less heard about to be aware of which further reveals the true intent of the state of Florida and where we are heading is:
ARTICLE VII FINANCE AND TAXATION, SECTION 4, SECTION 6
Homestead Exemptions shall be indexed, removed from Flood V Zones and Save our Homes repealed
07-04
Beginning in 2007, or the year after the property tax exemption was enacted, homestead shall be indexed. “Save our Homes” assessment cap shall be phased out over 10 years. Residual “SOH” cap shall be fully portable only during phase out period. Flood V Zones property shall not be available for property tax homestead exemptions. Properties in Flood A Zones shall have annual exemption increases limited by 1/2 index.
This is being sponsored by the Hurricane Insurance Creation out of St. Petersburg, chaired by John Jeffrey Lane. The sponsor of the initiative alone should be sufficient to alert you as to who are the beneficiaries of such an amendment.
The Hurricane Insurance Creation is pushing to get hurricane insurance incorporated into homeowner property taxes and thereby “flood the market” with their policies by reason of the private-public initiative. Interestingly, they are simultaneously pushing to pull the former Save Our Homes property tax cap. If this goes through, the insurance industry wins big and homeowners suffer monumental losses annually.
If you don’t read the amendment now and vehemently speak, soon we the homeowners will weep!
ARTICLE VII SECTION 9. SECTION 19. ARTICLE X SECTION 27
Hurricane Insurance as a Local Property Taxing Authority at Market Value
07-03
Create Hurricane Insurance with component flood and windstorm perils (FHW) that shall be written by the State on all Florida properties whether municipal, public residential or commercial, except in Coastal Barrier Resources Areas or other “Properties Ineligible”. All properties except “Properties Ineligible” shall have vouchers and separate accounts. Hurricane Insurance shall be a local property taxing authority and part of the annual property taxes.
Remember the government doesn’t love us as much as they say and ambiguity is the tendency of special interest groups (and the legislators they buy to favor their cause) proposing initiatives that really aren’t in the best interest of we the people.
Property Taxes and Home Affordability in Florida
December 18th, 2008
A key factor in the present Florida real estate troubles is home affordability. Many other issues exist and can be considered part of the normal market fluctuations. However, affordability is invariably the essential element.
Comparisons of Home Prices and Family Income in 1980 and 2005
Let’s use Miami-Dade’s median home price and Florida’s median family income statistics for this purpose.
Median Home Price in 1980 – $75,000.
Median Home Price in 2005 – $372,000.
1989 Median Family Income in Florida = $ 21,355.
2005 Median Family Income in Florida (estimated) = $60,000.
Increase of Median Family income in the same period = 181%.
Increase of Median Home Price between 1980 and 2006 = 396%.
Note: These figures have not been fully verified. They have been taken from different sources, and could reflect some inaccuracy. They are used to graphically explain a tendency, and only in this context, will they serve the purpose of this essay.
Average property tax for new buyer (including Homestead exemption) in 1980: $ 850.
Average property tax for new buyer (including Homestead exemption) in 2005: $5,899. (Approximate figures)
Homestead exemption grants a $ 25,000 deduction on the home assessed value for homeowners who qualify and register with their county appraiser.
What is Save our Homes ?
In 1992, Florida voters approved an amendment to the Florida constitution that limited the amount of value a homestead property could increase for tax calculation’s purposes.
The law limits assessment increases to 3% percent or the increase of the Consumer price Index – whichever is less.
Non-Homestead property is assessed at the full market value annually.
Home Affordability as considered through FNMA guidelines
$36,588 Minimum Yearly Income, as per FNMA guidelines, was necessary to cover Median Home purchase in 1980, assuming 90% financing @ 12.5% annual interest, 1% insurance annual rate, (PITI= $854).
Note the very high interest rates prevailing in the 80’s. (PITI = Principal + Interest + Taxes + Insurance)
$134,086 Minimum Yearly Income as per FNMA guidelines, was necessary to cover Median Home purchase in 2005; assuming a 90% financing @ 6.5% annual interest, 1% insurance rates, (PITI=$3,152)
Roughly, FNMA basic guidelines require that no more than 28% of the buyer’s gross income should be dedicated to pay for his monthly PITI (Principal + Interest + Taxes + Insurance).
To be noted is the dwindling affordability despite the fact that mortgage rates in 2005 were half of what they were in 1980.
Impact of Property taxes as compared to median home values in 1980 and 2005
Property Tax for new buyers as a proportion of median home value in 1980 = 1,133%
Property Tax for new buyers as a proportion of median home value in 2005 = 1.586%
The heavier burden is partly due to the decline of the homestead exemption as a proportion of home value.
The $25,000 exemption represented 33.3% of the median home value in 1980.
It represented a measly 6.7% in 2005.
Percentage of Median Family income dedicated to Home Property Tax in 1980 = 4%
Percentage of Median Family income dedicated to Home Property Tax in 2006 = 9,83%
However, this increase is only valid for new buyers in this market. The Save our Homes Tax break
unfairly burdens new buyers, vacation-home owners and investors, and protects Old Homestead Owners with the limitation to 3% yearly increase in their property taxes.
Fact: Even though Median Home Values have increased proportionally more than double the Median Family Income, and substantially increased the tax base, Counties and Cities, as beneficiaries of property taxes, have found their way to increase their mileage (or tax rate), further aggravating the cost of owning a property in Florida.
Do we fully understand the message that these irrefutable facts are sending to all parties?
To old homeowners in Florida: Do not ever, ever move from your house or condo. You will be punished by an unsustainable raise in property taxes, even if you downgrade to a smaller and more affordable home.
Do not try to add space, build or remodel. Every added square foot will be taxed at the full market value, because it would not be covered by the Save Our Homes exemption. You would be surprised by how much it could raise your tax bill.
To Owners of second homes or vacation homes in Florida: Congratulations, your equity has tripled in the last 10 years. Now, take your money and run. From now on, you are being hit with taxes three or four times higher then 10 years ago; while you are not taking advantage of schools and other infrastructure designed for permanent residents, you are paying the highest bills. Conclusion: Sell
To Investors who have held their property for more than 5 to 10 years. Congratulations; time to take your profits and find a better investment. Your tax expenses are 3 or 4 times what they were when you bought the property. You have tried to raise the rents you collect to cover your rising costs, but you have not been able to keep up to tax and maintenance fees increases. The fact is that renters cannot afford to pay a rent that would make sense for your investment.
To Investors who bought recently. Good luck. You have paid the high price. Your property taxes are high and relentlessly increasing. Your rents barely cover your taxes, maintenance fees and a tiny part of your monthly mortgage payments. The message: Cut your losses, sell and run… But this is the sticky situation of thousands of other “lucky” investors. As a last recourse, just try to rent it, take a monthly loss and hope for the best.
To New Homebuyers. Good luck. You are paying the highest prices. You are paying the highest property taxes. Your expectations of a quick valuation of your new home will have to wait for better times. Meanwhile, just clench your teeth, take the hit and hold on.
To Renters. You are already experiencing a strong pressure on rent prices and it will persist for some time. Your American dream of homeownership is being crushed and is almost unattainable now, but what you are paying in rent is almost a bargain. But expect progressive and unavoidable raises.
And the message that Florida residents are increasingly sending:
To Local Governments: You have been running wild with our dollars. You are fat and rich but you would not give up; you keep wasting our money and you keep increasing our taxes, and today you are the only beneficiaries of the real estate mayhem that is threatening our state. What about some legislature-mandated spending limits?
Correcting the problem:
Whoever is now a beneficiary of the Save our Homes taxation should not tolerate any intent to take away this privilege. After all, 3% cumulative annual increase (as allowed by the Save our Homes rules) is more than fair.
Cost of living has not on average increased more than this percentage during the last 10 or 15 years. So, why accept to be taxed on hypothetical sales value of your homes by greedy local government? We all know that county and city services have not improved in any way to justify three and four times larger tax bills. Therefore, their expenses should have increased at the same rate as the national inflation rate. Unless they have chosen to mask their inefficiency at taxpayers’ expense.
To the contrary, we can even argue that the mushrooming new constructions have already increased their tax base in such a way that the common homeowner should have expected a reduction in tax rates.
Legislators should better consider new regulation to transfer these Save our Homes advantages, when homestead owners switch properties of the same of lesser values. This would surely reactivate the real estate market.
There is no doubt that the present level of property taxes should face a serious examination in order to place them back at their historical levels, as a reasonable proportion of median family incomes, as opposed to their now almost confiscatory levels. I am talking about reduction of tax bills.
The present real estate recession is not due to circumstantial or accidental factors. There are deep economical reasons which can and should be corrected. Affordability of homes is part of our government responsibility and should be addressed accordingly.
Unfair and abusive property taxes are one known issue and voters should put pressure on their representatives to correct it.
We are not talking about tentative and timid measures. I have heard of a motion to increase the Homestead exemption from $ 25,000 to $50,000. This will not solve anything. It would just be a symbolic and political step.
Why about a real study of the impact that 25 years of inflation have done to nullify the economical and social effect of this exemption? Shouldn’t we roll it back to be the same proportion of basic home values as was in its original intent?
Wouldn’t a $ 100,000 exemption be closer to reality? Wouldn’t that help the first time home buyer achieve the American dream? Wouldn’t that be a real injection of reality to our real estate market and our economy in general?
Affordable housing for Floridians is an urgent necessity. No doubt that million-dollars homes and condos have contributed to our economy, but will there be any economy left when working people start leaving the state because of unsustainable home values?
The “save our homes” laws have somehow protected a portion of our homeowners. However, they are an incomplete and unfair arrangement. A complete revision to maintain this protection and also protect new homebuyers, vacation home buyers and investors against abusive property tax increase would be welcome.
Of course, the property tax issue is not the only element in home affordability. Interests and financing costs, inflation, salaries, cost of building, land values, are also determinant factors.
But property taxes are a cumulative burden on the homeowner and they will haunt him year after year. It is time for local governments and our legislators to address this issue that is vital for the survival of our battered middle class.
Disclaimer: This article represents the personal opinions of the writer and are not related to any firm, association or business with which this writer maintains any kind of relationship.
Owning a Vacation Property in Florida
December 11th, 2008
Given the fact that the housing market is at an all time low in the State of Florida, owning a vacation property in Florida is now considered to be a realistic endeavor for those that otherwise could not make their dream a reality. There is a large surplus of beach houses, private villas, luxury homes, and standard homes on the market in Florida, but there is a rapid decline in interested buyers. It does not matter if you want a luxury vacation home that sits on Miami Beach or a home that is tucked away in a quiet community, there are many that you may choose from and the prices are just right! In this guide, you will learn how to choose the best vacation home in the Sunshine State for your needs.
The first step to discovering that perfect vacation get a way in the luxurious State of Florida is to research the state as a whole in order to determine which area is right for you as well as those that will be vacationing in the home with you. You may like to have a home that is located on a beach, or close to a beach. You may want to purchase a home that is located on one of the many islands that are part of Florida. You may want to purchase a home that is located on a river or lake, in the wooded and private areas of Florida, or even near the larger cities located in Florida, such as Miami, Orlando, or Jacksonville. It is important to know right from the beginning what type of location is ideal for you.
When purchasing a vacation home in Florida, it is important to consider the taxes that you will need to pay that is real estate based, the type of homeowner’s insurance that you will be responsible for keeping on the home, and other expenses. If you purchase a vacation home that is near the coast, you can expect to pay higher taxes due to the fact that these areas are typically congested as far as tourists, and the general population is concerned. You should also understand that having a home near the coast will have higher insurance rates. This is mostly due to the fact that Florida experiences many annual tropical cyclones and damages typically occur as a result of them.
You will also need to determine if your vacation home needs to be in an area that puts you in close proximity to employment opportunities, medical services, and educational facilities. There are many small communities in the State of Florida that only have access to a limited number of resources when it comes to employment, health services, and schools. Then, there are extremely large, populated areas that are close to many of these types of institutions, opportunities, and services. Knowing what you need, what you want, and how to access sources that you will depend on while in Florida will help you choose the best possible vacation home in the state!
Should You Use a Property Management Company or Manage Your Real Estate Investment in Florida?
December 10th, 2008
When considering investment properties, first of all, it must be determined that it is profitable and a good idea to purchase rental properties. Let’s talk about this aspect. Owning rental property produces rental income which, if after expenses are deducted produces a profit, would be viewed as a good investment. Add to this the possibility that property has the potential to increase in value over time and you have some solid reasons to purchase investment properties.
If the rental income is paying more than the monthly mortgage amount leaving some excess for home repairs, it is possible the home could be paid off entirely by renters. At some point in the future, this same home can be sold with the seller receiving the full value of the property. Sounds like you can’t go wrong in owning rental properties. But is this true? It all depends on whether the investor has thoroughly completed their homework.
If you are presently considering an investment in rental properties, be sure you do some thorough research. It’s important for the property investor to gather adequate information before committing to rental property ownership. Searching the internet, reading real estate publications, attending seminars, and speaking personally with property investors is a great beginning that will place you on the road to making a wise, informed decision. Starting up a business is a little like real estate investment. Knowing the facts and putting time into the purchase gives you a much greater chance of success. Doing your homework can prevent disastrous property investment decisions.
Why a Real Estate Investment in Florida?
There are many issues that need careful consideration before making a final decision on property investment. These include the location of the property, Are you interested in an urban or rural location? What is the condition of the property, how much maintenance will be required to keep it in good working order? What are your financing options? What do taxes run on that particular piece of property in that location? How will you select tenants?
These are all vital questions that could determine the success or failure of your venture. Let’s refer to the first and probably most important of questions to ask regarding property investment. What location will you choose? In searching for the best possible location, it is important to look at trends among renters. The American population continues to grow with a gain of about one person every 14 seconds. Where are all these new people coming from? An increase in our own population and immigration account for this strong growth. With this in mind, it is safe to say there will be a continued need for housing in the future. Concerning the immigration population, California, New York and Florida lead the list, in that order, in new residents. What a potential pool of people to pull from! Looking at the cost of real estate purchase in these three states, a real estate investment in Florida ranks among the most reasonably priced. Along with the strong immigration growth, Florida is a hot tourist destination, making it an ideal location for the purchase of rental property.
Real Estate Investment in Florida – Where is a Good Choice?
Along with having the 3rd highest rate of population growth, the high tourism rate is definitely a great reason for a real estate investment in Florida. With its year-round temperate climate and vast array of attractions, both natural and created, it is the ideal location for family holiday vacations. Families and singles return again and again to enjoy the delightful holidays Florida offers. Deciding where to purchase your real estate investment in Florida may be a difficult decision. Tourists in Florida are searching for sun and fun. A real estate investment near the beach, from Key West in the south to Jacksonville in the north and east from Daytona Beach to Fort Myers would offer good returns on your investment. Beach lovers will pay top dollar for rentals near the ocean. Let’s consider Central Florida as a wise real estate investment. Walt Disney World has made Orlando the 3rd favorite tourist destination for overseas travelers. Only Los Angeles and New York City rank higher. With its resplendent and numerous lakes, tropical landscaping and modern, clean skyline, Orlando, the largest city in Central Florida, has aptly earned its title of “The City Beautiful”. Along with the biggest drawing card of all, Walt Disney World, theme parks such as Universal Studios and Sea World, have made Orlando one of the largest markets in the world for tourism. 2.6million international travelers flocked to Orlando in 2004, according to the Orlando/Orange County Convention & Visitors Bureau, a 12 percent increase from 2003.
Real Estate Investment in Florida – Where in Central Florida?
Having established the fact that Central Florida is a hot tourist market, it would stand to reason that a real estate investment in Florida, particularly the Central Florida area, would make good business sense. But how would one go about locating a desirable area and property for this investment? A beginning search would lead you to researching properties listed with the major real estate companies or visit craigslist.org in your area. Deciding which type of property is important. Do you prefer a single family residence, a townhouse or condo? Keep in mind that townhouse and condo purchases may offer onsite property management services. Will your real estate investment in Florida purchase be in a new development, or in an established, older area? Purchasing rental property in a new development often offers pre-construction prices which can be substantially lower than prices post construction. Are you available to manage the property, or do you wish to employ a property management company to take care of the details of property upkeep, record keeping and renter booking? Doing it yourself can save you 6 percent and more of the cost of rent, but can end up costing you if you don’t know what you are doing. If you do not plan on living in close proximity to your rental property, it would be wise to consider spending some extra dollars to employ a property management company. This will save you headaches and time, your own time for property maintenance and the time it takes to locate renters.
Real Estate Investment in Florida – Consider Davenport, Fl
Considering a real estate investment in Florida, just 5 miles southwest of Disney you will discover the quiet, quaint town of Davenport, Fl. Its central location yet off the beaten track give it an appeal all its own. Davenport, Fl is only 2 square miles in size. With its small town appeal, it is an attractive rental option for tourists. Davenport, FL is under 30 minutes from Universal Studios, Sea World, Disney World and other Orlando attractions. It is just one and ? hours from Kennedy Space Center and within an hour’s drive to Tampa (home of Busch Gardens) and Cocoa Beach. After a hectic day at the major tourist attractions, what a welcome respite it would be for renters to lodge in this quiet location which is surrounded by orange groves. Convenience is another drawing card with a Super Wal-Mart, open 24 hours a day, just nine miles away. Kissimmee is just a short drive with its spectacular nightlife entertainment options such as Arabian Nights and Medieval Times. Family oriented Kissimmee attractions, Green Meadows Farm and the Silver Spurs Rodeo are also nearby. The small town environment of Davenport, Fl offers a quiet stay that is near all the most popular attractions, including theme parks, family spots and great shopping and dining, located not far from the Florida Mall, outlet malls and the Orlando Mall.
Bimini Bay, Davenport, Fl
Located in Davenport, Fl in close proximity to Walt Disney World, is a brand new development, Bimini Bay. On 80 acres, 360 three bedroom two bath townhouses are ready for purchase. The Davenport, Fl townhouses are turnkey ready with fully equipped kitchens, appliances and all that is needed to set up house including linens. There will also be 360 fully equipped one bedroom apartments. The planned amenities include a resort pool, two movie theatres with stadium seating, a major chain restaurant, a large Club House, a pool, lazy river, water slides, exercise room, tennis and volleyball courts along with many other features. The best part about an investment in a townhouse at Bimini Bay, Davenport, Fl is that the property maintenance aspect is taken care of for you. The investor reaps the benefits of ownership such as property appreciation and the ability to stay in the purchased property for a minimal fee without the headaches of property management. The onsite management team takes care of maintenance, markets the property and secures renters. The investor receives the same rental income each month, making this a low stress investment. At the beginning of this article, there was discussion on managing rental property yourself or obtaining a management company for this purpose. Purchasing property at Bimini Bay ensures the on-site management will handle all the issues of property management, while allowing the investor the advantage of a steady income along with the benefit of using the property.
Hudson Florida Real Estate – Affordable Waterfront Property
November 11th, 2008
Hudson, Florida bills itself as the place where ‘the nature coast meets the sun coast’, and it’s a fitting description. Located at the very northern tip of the Tampa Bay metropolitan area, you can head north from Hudson into Florida’s Nature Coast and follow the many hiking trails along the shore and inland, or head south through the Sun Coast cities of Port Richey, Tarpon Springs and Palm Harbor. Or – you can stay right in Hudson and enjoy the best of everything that Florida’s Gulf Coast has to offer. And when we say everything, we mean everything.
Named one of the Top 3 areas for vacation homes by the Wall Street Journal, Hudson has a split personality – a three way split. The unincorporated city has three separate and very distinct areas. To the west of US 19 along the coast, you’ll find one of the most delightful old coastal towns ever created. In the 1950s, a group of businessmen decided to increase the property value of their town with a unique idea – waterfront property for everyone. Thus began a system of canals dredged inland from the Gulf Coast. The old coastal neighborhood features homes built on the canal and the belief that every man should be able to park his car in the driveway, walk through the house and out the back door to his boat. Today, the original homes built on the canals, many of them single and doublewide mobiles, rub shoulders with brand new homes built on stilts with luxury amenities.
East of US 19 are the beautiful homes and subdivisions of a comfortable, prosperous suburban town. This central area of Hudson features spacious homes, curving streets and cul de sacs, and manicured greens and golf clubs. With names like Beacon Woods, Brentwood Estates and Fairway Oaks, the carefully planned neighborhoods are a haven away from the bustle of the big city, where families and retirees can enjoy a life of leisure in the sun.
To the east and north of the subdivisions you’ll find the old southern neighborhood, which still bears all the hallmarks of rural living. Sparsely populated, development has yet to reach this area of Hudson, but you’ll find farms, ranches and wild wetlands far from the beaten path here.
So what does it cost to live in one of the top three locales for a vacation home in the country (top ten in the world)? It’s amazingly affordable, with some older single family homes still selling for under $100,000. The average home selling price is inching up, with luxury homes in the more desirable subdivisions averaging about $350,000. If you’re intrigued by the idea of living on your own dock with a canal in your backyard, Hudson is definitely worth a look.
Palm Beach Florida Real Estate and Palm Beach Investment Properties
November 3rd, 2008
Palm Beach is a fully developed community, world-renowned for its extraordinary beauty, quality of life and small-town character. It is one of the most prestigious towns in South Florida. Henry Flagler founded the town in 1911. He was one of the founder of Standard Oil.
At only 14 miles long, The island of Palm beach offers amazing spaces and places. The Town offers fantastic sport fishing, exceptional golfing, the most exclusive country clubs and some of the world’s best boating. Nearby finds a private airfield for your plane and elegant horse farms… Polo anyone?
Even with such world class amenities Palm Beach never loses its intimate, community feel. The glorious weather alone is reason to live here! Wouldn’t you rather be soaking up the sun than shivering in the snow!
Palm Beach is considered an island. Beautiful beaches and the historic Par 3 give the island the feel that you are taking a vacation. The Town also has some famous residents. One of these famous residents include Donald Trump.
The Town’s Real Estate is some of the most sought after property in the world. The luxurious properties of this amazing island are owned by some of the most prestigious people in the world. These properties can be an investment as they tend to keep their value when the economy takes a down turn.
The Island Town has some of the most beautiful homes in the world. The island is not over-crowded so there is plenty of room for new residents.
If you want to know more about the luxurious properties in the Town Of Palm Beach Florida, consider talking to an expert like Susan Polan. She’s an expert in Palm Beach properties. If you are looking to buy a house in this prestigious town please go to her site and contact her.