St. Johns county neighborhood recommendations, up to 350k, no CDDs/low HOAs out there? (Plantation: real estate, 2014) - Jacksonville - Florida (FL) - Page 2 - City-Data Forum

Shannon4426 · 06-12-2012, 01:35 PM

No problem! I've heard different takes on the CDD issue. Sometimes it seems like a shell game... the builder will offer you either $20K in incentives, or pay off your CDD. So you could opt to take the upgrades instead and pay the CDD yourself since it's tax deductible, and use the $20K to reduce the principal which is not tax deductible. But will CDD's always be deductible? Who knows. Plus the $20K will probably be on options that are overpriced anyway. Or if you have them pay off the CDD, your principal may be higher on the house comparatively, since it seems almost all builders are offering big incentive. I would definitely shop around and play the builders' incentives against each other.

We're in Durbin Crossing, and we built for $100/square foot. This includes top-of-the line upgrades in the entire house... gourmet kitchen with stacked cabinets, built-ins, wood floors. That seems to be the benchmark right now for new construction and resales in the area. From what I've seen, if you pay more than $100/sf, you're overpaying. Many house come in even less, down to $90/sf.

I believe Coastal Oaks in Nocatee may be selling over $100/sf, not sure on that one, but if so it would completely justified. It's a different level of community and homes. Just like waterfront homes are probably at $300/sf.

Anyhow, that's what I found during the past few months of research, hope it helps!

Diversion · 06-12-2012, 01:43 PM

Quote:

Originally Posted by Shannon4426

No problem! I've heard different takes on the CDD issue. Sometimes it seems like a shell game... the builder will offer you either $20K in incentives, or pay off your CDD. So you could opt to take the upgrades instead and pay the CDD yourself since it's tax deductible, and use the $20K to reduce the principal which is not tax deductible. But will CDD's always be deductible? Who knows. Plus the $20K will probably be on options that are overpriced anyway. Or if you have them pay off the CDD, your principal may be higher on the house comparatively, since it seems almost all builders are offering big incentive. I would definitely shop around and play the builders' incentives against each other.

We're in Durbin Crossing, and we built for $100/square foot. This includes top-of-the line upgrades in the entire house... gourmet kitchen with stacked cabinets, built-ins, wood floors. That seems to be the benchmark right now for new construction and resales in the area. From what I've seen, if you pay more than $100/sf, you're overpaying. Many house come in even less, down to $90/sf.

I believe Coastal Oaks in Nocatee may be selling over $100/sf, not sure on that one, but if so it would completely justified. It's a different level of community and homes. Just like waterfront homes are probably at $300/sf.

Anyhow, that's what I found during the past few months of research, hope it helps!

Yes i've known about the $100/sqft thing a long time. I guess our current realtor gets nothing if we decide to use a builder and go that route? I can see why i'm being deterred a bit from new homes now.

So CDDs are a deductable when it comes to tax time? How close to 100% is expected for a return?

jbean1234 · 06-12-2012, 01:53 PM

Quote:

Originally Posted by Diversion

Yes i've known about the $100/sqft thing a long time. I guess our current realtor gets nothing if we decide to use a builder and go that route? I can see why i'm being deterred a bit from new homes now.

So CDDs are a deductable when it comes to tax time? How close to 100% is expected for a return?

On the contrary, your realtor will earn a commission on new construction, will have a bit less work to do (contract is drawn up by builder, binder is held with builder, etc.) and many (most?) builders offer incentives to realtors for bringing customers to them who end up buying. If you feel you are being "deterred a bit" by your realtor from buying new homes it is not a commission thing; if he/she has brought you to the Sales Centers of the builders or if you have told the Sales Reps that you are working with a realtor, the agent you have been working with will get the commission he/she has earned.

Shannon4426 · 06-12-2012, 01:55 PM

If the CDD is included on your tax bill (which most of them are, but you can double-check with the builder), you can deduct them. But they're only deductible, not credited. So the return you get would depend on your own personal tax situation. We typically get back around 25-30% of what we deduct.

Shannon4426 · 06-12-2012, 01:56 PM

Quote:

Originally Posted by jbean1234

On the contrary, your realtor will earn a commission on new construction, will have a bit less work to do (contract is drawn up by builder, binder is held with builder, etc.) and many (most?) builders offer incentives to realtors for bringing customers to them who end up buying. If you feel you are being "deterred a bit" by your realtor from buying new homes it is definitely not a commission thing.

Do builders pay the full 3% to realtors?

Diversion · 06-12-2012, 02:02 PM

Someone just told me that the CDD incentives builders are offering only applies to the first year? They aren't paying the entire bond off?

grayrunner · 06-12-2012, 03:12 PM

Well, basic fact is be warned to be skeptical of people advocating a certain HOA (especially things like Nocatee) because realtors pimp this board heavily looking for the ideal client (IE one who doesn't know the score locally)

Another basic fact is that condos and any divided ownership like hoas can take you down if you lose enough owners. They have to increase the payment for the rest. And they implode ALL the time and they always have because of overbuilding. I could give you a list but it wouldn't be anywhere complete.

St John's county, without any neighborhood ordinance, allows for 35 ft height without a zoning variance. That could be a big house on an average lot, and construction is really cheap right now if you are your own general contractor, and I wouldn't use anybody else. So really, you just to find out about where you want to live in this county. I live in Ponte Vedra Beach near the ocean but I don't have to commute anywhere.

The big question is your commuting planning. St Johns' is a big county and some routes during regular commuting hours are impossible.

donisanasfan · 06-12-2012, 05:52 PM

tell us wise grayrunner ...what is the score?

"beware of pimps in Nocatee , hovering over the those who do not know the score....." what are you like the Mr Miyagi of St Johns County?

thanks for the laugh though

I'm not a realtor, but always did like those technicolor dream coats

ctown83 · 06-12-2012, 06:31 PM

The King and the Bear neighborhood- gated in WGV area is not CDD. They have HOA, not sure how much, but no CDD.

daisies76 · 06-12-2012, 08:43 PM

No, the CDD portion of your tax bill is actually NOT tax deductible because it is considered a local benefit. If it came down to an audit, it would be disallowed. The real estate tax portion itself is deductible, but not anything that is considered a local benefit such as the building of schools, construction of streets/sidewalks, water or sewer lines, etc. They are not deductible because these added benefits tend to increase the value of your home. (IRS Publication 530, page 3) I had this explained to me from the IRS when I called on this very topic.

If in doubt, read the publication or call the IRS. Going through an audit is NOT FUN!