Florida's New Property Tax Laws Explained

Well, if you follow Florida real estate at all, you've probably long since heard that Florida passed some new property tax laws a few weeks ago. What you may NOT know, however, is what to make of it. For what it's worth, here's my take on it.

1) To begin, what was done probably wasn't enough to cause any real change in Florida's lousy real estate market. Homesteader's in Florida were helped out a little. By that I mean a 3-9% reduction on their next tax bill. So at the most, if your tax bill is $5000 you MIGHT save $450. At the most. That's a night in a fancy hotel, dinner, and drinks...maybe even top shelf drinks. In my book not enough to get me too excited.

2) If you live outside of Florida but own property here (non-homesteaded) you didn't get much help either. By most accounts I've seen, you won't save anything. But, your taxes might not go up like they have been because...

3) Millage rates will be rolled back to 2006-2007 levels. (Basically 1-year). Most Florida taxpayers were hoping for much more, legislators are telling us, hey, at least its something, and city leaders (who have to roll back their spending) are saying its too much...Go figure!

4) Up next for Florida voters will be a chance in January to increase the homestead exemption (currently $25,000 in most cases) to what is called a super-exemption or, 75% of the first $200k in value (Minimum of $50k exemption)


As always, we'll keep you posted as things progress. But for now, put away any immediate hopes of huge property tax reform in the sunshine state.

New Florida homeowners insurance option for the rich

If your home is worth $1 million or more, there is a new company that wants your homeowners insurance business. The company is called PURE. Read an article about it from the Naples Daily News. PURE says that they can offer the owners of "high-value property" better insurance rates than they might otherwise find on the market.

I don't know how many Boomers on the Move readers this will apply to, but it is worth noting that there are other options available for insurance if you've got the money.

Maybe something else like this will come along soon for the rest of us.

More rave reviews!

The reviews keep rolling in:

"If you're a baby boomer thinking about buying a home in Florida, this is your blueprint."

-Barbara Corcoran, NBC's Today Show Real Estate Correspondent

“…over the next 25 years or so, the Sunshine State can expect over 22.5 million new boomer residents. Each and every one should own a copy of Ryan Erisman's book."

-Richard Croker, Author, "The Boomer Century; 1946-2046"

“In the old American Express Commercial, Karl Malden advised people not to leave home without their card. I think no one should buy a home in Florida without reading Florida for Boomers. It is that good."

-Steve Weisman, Author, "Boomer or Bust"

Florida for Boomers featured in Miami Real Estate Update

I'm proud to say that Florida for Boomers has just been featured in Mark Zilbert's Miami Real Estate Update newsletter. For those of you not familiar with Mark, he is one of the premier condo brokers in South Florida. He has been featured on the Today Show, 20/20, The Wall Street Journal, and I interviewed him about his boomer clientele for Florida for Boomers.

Here's what Mark had to say in his newsletter:

Florida for Boomers: A Guide to Real Estate Author Ryan Erisman has created a great new guide to buying real estate in Florida. It's targeted at Baby Boomers, however, it's a well-written overall guide that will suit anyone. The book teaches you everything from finding a real estate agent to understanding how property taxes work. Check it out. You won't be disappointed.

Sorry, Charlie: No Florida property tax relief yet

Florida Governor Charlie Christ's first legislative session has ended without any sign of property tax relief in the immediate future. A special session has been called for June, but consensus here is that not much will come from it. The best most lawmakers think they can agree on in that session would be a roll-back of property tax rates and a cap on them rising. Better than nothing.

But any real reform will have to wait...perhaps for a while. The House and Senate cannot come to an agreement on what is the responsible solution to Florida's property tax problem. Lawmakers are citing a desire to cross the t's and dot the i's properly this time. Once they do agree, or at least come to a compromise, voters would have their say. If lawmakers can't come together on it this June, this may not happen until November 2008.

Florida for Boomers Just Released!

My new book, Florida for Boomers: A Guide to Real Estate has just been released on Amazon.com. Click here to buy it!

In celebration of its release, I'll be posting free excerpts on this blog from the book in the coming days and weeks. If you prefer not to wait, you can read the excerpts all at once here.

Now go buy the book, and make your dreams of Florida come true!

Florida Property Tax Gridlock

From FloridaCapitalNews.com:

"TALLAHASSEE -- Legislative negotiators officially declared gridlock Tuesday on the radical idea of abolishing all property taxes on resident homeowners by raising sales taxes - the centerpiece of House Speaker Marco Rubio's reform.
House Republicans have refused to budge from their demands to give a whopping multibillion-dollar relief plan to voters, while the Senate has steadfastly refused to consider a sales tax increase."

It sounds to me like Governor Christ's more conservative plan of rolling back property taxes and then capping them has a better chance of meeting with both House and Senate approval.

Read the full story here.

Zillow Under Fire in Arizona

Zillow.com, the home pricing service I talk about in Florida for Boomers, is coming under fire in Arizona. The Arizona Board of Property Appraisers has just issued cease and desist letters to Zillow.

The service has drawn the ire of many real estate professionals because they fear it may undermine their stranglehold on home price information. Now Appraisers are jumping on the bandwagon. But with a reported 4 million users a month and lots of venture capital, look for Zillow to put up a pretty strong fight here.

Read the full story.

NYtimes.com: "When you buy before its built"

The New York Times has been coming through with some good (relevant) articles for boomers relocating or buying second homes. Today, they tackle the process of buying a new home or condo before its built.

"Buying into a development before construction has begun is not a new phenomenon, but with the slowdown in the real estate market — and in condo sales in many areas — the rules are changing. A few years ago, the incentive to condo buyers was clear: You would buy early, sit back and, by the time the building was in place, be pretty certain that the unit’s value had increased substantially. But the days of buyers lining up for a condo in a building that might be years from completion are long gone — and developers are facing a new reality."

Read the full story

Possible Flood Insurance Reform

There's a whole section in my new book Florida for Boomers about flood insurance and how important it is to have flood insurance regardless of where your home is located. There may be some changes to the National Flood Insurance Program coming up:

"Currently, homeowners can obtain up to $250,000 in coverage for their houses or condominiums, plus up to $100,000 in coverage for their contents. But last year, the House voted to raise those limits to $335,000 and $135,000, respectively."

It's anybody's guess whether or not these changes will be enacted by Congress, but the wheels are in motion. Read the full article

Snowbird Property Checklist

Great article at nytimes.com about what snowbirds should do to prepare their homes and properties for the months that they will be away from them. Read the article here.

The article mentions turning off the main water valve and the hot water heater, and while I agree with this advice, when you return make sure to turn the water back on, before the hot water heater. The hot water heater has coils inside that can burn up if they are on with no water passing through them. I mentioned this in my new book Florida for Boomers: A Guide to Real Estate

Sit on Trump

Love him or hate him, Donald Trump is invading your home. Pretty soon, you can furnish your new home in the sunbelt with the Donald Trump line of home furnishings, "Trump Home" by Lexington Brands. It certainly begs the question... what's next? Appliances... plumbing fixtures (toilet that says "You're fired!" everytime you flush?)

Read the full article at HendersonvilleNews.com

North Carolina "Home Tax" transfer tax increase in the works

Buying and selling a home in North Carolina might get a little bit more expensive later this year if some local leaders and legislators have their way. NC already has a .2% deed stamp tax (by comparison, Florida's is .7%). But some people in local and state governments are saying thats not enough to fuel North Carolina's growth and want to add an additional transfer tax (Realtors opposing the measure are calling it a "Home Tax") of up to 1% ($1,000 for every $100,000 of the sales price).

Read the full article in the Greensboro News-Record

Retirement "Spotlight Shines On The Sun Belt"

(Photo from answers.com)
Found this article in Investor's Business Daily about the Sun Belt being the ideal destination for retirees.

"Florida and its beaches remain a popular place to spend the sunset years, yet the current hottest retirement destination doesn't even have a coastline: It's Arizona."

A study by a University professor spotlights the top areas the over 60 set are moving to. "According to Wake Forest University professor Charles Longino, a gerontologist who studies the migration of people 60 and older, the top retirement destinations for Americans are the counties that include the following metropolitan areas:
• 1. Phoenix.
• 2. Las Vegas.
• 3. West Palm Beach, Fla.
• 4. Fort Lauderdale, Fla.
• 5. St. Petersburg, Fla.
• 6. Fort Myers, Fla.
• 7. Tucson, Ariz.
• 8. Los Angeles.
• 9. Sarasota, Fla."

I had planned the first follow-up to Florida for Boomers to be Carolinas for Boomers. But after seeing this perhaps Arizona for Boomers will be the next book in the for Boomers series. Stay tuned.

Retirement Community Amenities: Clubhouse, tennis, shuffleboard, swimming pool... Nintendo?

What sort of amenities are you looking for in a retirement community? A recent story highlights the hottest new amenity in retirement communties: The Nintendo Wii. The race is on to see which builder/developer will give one away with every house sold.

Copy and paste this into your browser for the full story: http://www.msnbc.msn.com/id/17753137/

Thinking of starting a new business when you retire?

If you are, I've got good news. Several top states for retirement are also ranked as the most business-friendly states.
Here's the top five: 1) Virginia (it's for lovers...and businesses) 2) South Carolina 3) Florida 4) North Carolina and number 5) Utah

Read the full story

UF: Florida single-family housing hits bottom

From an article in the Jacksonville Business Journal
A University of Florida study suggests the state's single-family residential housing market has bottomed out.
"If you're thinking of buying a house, there's probably not much to be gained by holding out at this point," said Wayne Archer, director of UF's Bergstrom Center for Real Estate Studies. "It doesn't look like prices are going to fall anymore." Read the entire article.
My take:
It's certainly starting to look like the perfect storm: Lots of homes to choose from, great incentives, we haven't had a hurricane in months!, and if they do away with the property taxes look for demand (and pricing) to start heading back up. If you're still on the fence about Florida, it might be time to start thinking about getting off.

No More Property Tax

If you've been reading this blog regularly, you know that property taxes will be a hot topic in Florida for the foreseeable future. Here's more on the subject:



From the website NoMorePropertyTax.com:

"Skyrocketing property tax bills, combined with the high cost of insurance and energy, are breaking the backs of Floridians. The cumulative impact is hurting our economy and threatening our quality of life. As our wallets get skinnier, government gets fatter. Since 2000, government income from property taxes grew by 99%, while Floridians’ income only grew by an average of 44%. Floridians have the power to stop the out-of-control property tax bills and out-of-hand government spending. But we need Legislators to give us the chance to let our voice be heard. Learn more about the plan, calculate your savings under the plan and tell your Legislator you want your chance at the ballot box to vote NO to property taxes."

To learn more, and to sign a petition endorsing the plan to eliminate property tax in Florida, visit No More Property Tax

Psychology of a real estate market crash

Real estate crash or no crash...if you own real estate in Florida, or you're considering buying some, you're interested in what's going on with the market. This article from the Herald Tribune provides some good insight into the psychology going on behind the scenes of the Florida real estate market.
Read:
Theorist: As real estate investors emerge from denial, expect grief

Baby Boomer Moving and Housing Trends

Good article at seniorjournal.com on where baby boomers are moving to. The article suggests that most boomers will be moving "across town" rather than to other parts of the country.

Read the article here

So, where are you moving to?