Tax Certificates are indeed a good investment if you know the rules and have a realistic view of the returns. If you are seeking property ownership, tax certificates are not the way to go, seek out tax deeds. If you seek a relatively low risk investment which carries a great return in interest, up to 18% annual in Florida, tax certificates are the way to go. So many hype filled programs are promoted as, buy a certificate and own the property, but the reality is that fewer than 1% of certificate holders get the property for what is invested in the certificate. Example: there were around 25,000 certificates advertised in 2008 in Citrus County, yet only 6 tax certificate holders were issued the tax deed for what was invested in their certificates. There were about 900 tax deeds being applied for in that year.
Example: In Palm Beach county there were less than 30 tax deeds sold in 2008 yet there were tens of thousands of tax certificates issued by the county in 2005 and in 2006. Because the certificate holder is required to hold the certificate for 22 months before application is made for a tax deed, you would expect a considerable number of tax deed applications to be made in 2008. (Application results in tax deed auction)The reason for so few tax deeds being auctioned is that the owners redeem them by paying the taxes.
Free step by step tutorials for tax deed and certificate investing can be found here.
www.floridataxsale-foreclosure-info.com
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