New exemption will ruin us.... (Tampa: how much, house prices, neighborhoods)

[Cora72]

Much of Tampa's neighborhoods have improved in value because people have bought inexpensive homes and flipped them.

The new super exemption we are sheilded 75% of the actual home value. So if I buy a run down house and rehab it to triple the value, like I have on my current home- I get hit with a bunch of taxes over the course of several years of ownership.

In the old way of doing things my home value was a set amount when I bought it, taxes were rated on that alone and then no matter how much I improved it I still couldn't get more than a 3% increase.

Whether we flip a home ourselves or have money to hire contracted improvements it seems this law going away in Florida may prevent neighborhoods from renovating and rehabbing like we need. Any thoughts on this?

[vilehelm]

For those of us from out of town could you link to whatever you're talking about?

[JimKing]

Originally Posted by Cora72

Much of Tampa's neighborhoods have improved in value because people have bought inexpensive homes and flipped them.

The new super exemption we are sheilded 75% of the actual home value. So if I buy a run down house and rehab it to triple the value, like I have on my current home- I get hit with a bunch of taxes over the course of several years of ownership.

In the old way of doing things my home value was a set amount when I bought it, taxes were rated on that alone and then no matter how much I improved it I still couldn't get more than a 3% increase.

Whether we flip a home ourselves or have money to hire contracted improvements it seems this law going away in Florida may prevent neighborhoods from renovating and rehabbing like we need. Any thoughts on this?

I don't agree with your first paragraph one bit. The flippers are what caused the disastrous bubble. You can not artificially "improve" a neighborhood's value. House prices must be attached to real fundamentals such as wage increases.

If an areas wages increase only 3% per year, it does not matter if every single house is remodeled and made twice as 'valuable'....it ruins the area because people can not truly afford them. 3% wage increases equals 3% housing increases, not 20-30%!

[ChrisJ]

I know that when the polls get ready to open there are going to be people everywhere (teachers, fireman, etc) standing outside the polls trying to convince people to vote no on this change. That scares me, as I really, really want this to pass. I'd like to organize some kind of a group to go around to some of the polls and give the other side of the argument and try to get the people to approve this change to the constitution.

I need volunteers to help me organize something. Anybody interested? If so, respond or PM me.

[Bezzled]

HAHA I can't wait to move.

[macguy]

Originally Posted by Cora72

Much of Tampa's neighborhoods have improved in value because people have bought inexpensive homes and flipped them.

The new super exemption we are sheilded 75% of the actual home value. So if I buy a run down house and rehab it to triple the value, like I have on my current home- I get hit with a bunch of taxes over the course of several years of ownership.

In the old way of doing things my home value was a set amount when I bought it, taxes were rated on that alone and then no matter how much I improved it I still couldn't get more than a 3% increase.

Whether we flip a home ourselves or have money to hire contracted improvements it seems this law going away in Florida may prevent neighborhoods from renovating and rehabbing like we need. Any thoughts on this?

Make major improvements properly permitted and you will most likely be reassesed. Your SOH will go out the window anyway.

[scorp200]

Originally Posted by JimKing

I don't agree with your first paragraph one bit. The flippers are what caused the disastrous bubble. You can not artificially "improve" a neighborhood's value. House prices must be attached to real fundamentals such as wage increases.

If an areas wages increase only 3% per year, it does not matter if every single house is remodeled and made twice as 'valuable'....it ruins the area because people can not truly afford them. 3% wage increases equals 3% housing increases, not 20-30%!

Exactly - St. Pete is a housing nightmare because of this (or at least was when I moved out in May).

[Cora72]

Speaking from experience being a middle class paid single female, buying a house for $67,000 and turning it to $200,000 was an opportunity. I pay taxes on the original cost with a small increase of 3% max. Almost every house on the block has doubled or tripled because of rehab efforts. Sit down with a calculator and figure out what that costs over 10 or 20 years with the new plan.

With the new plan poor people can live in repressed neighborhoods and do nothing because they'll get taxed for things they can barely afford already. They will not have the option I had of improving a home when that alone costs a lot. The rich people can buy in the neighborhoods they want. It sounds like a great plan for the rich get richer and the poor get poorer. Your right, it sounds like a fantastic plan for our economy....

[mustgetoutofflorida]

Originally Posted by Cora72

Much of Tampa's neighborhoods have improved in value because people have bought inexpensive homes and flipped them.

The new super exemption we are sheilded 75% of the actual home value. So if I buy a run down house and rehab it to triple the value, like I have on my current home- I get hit with a bunch of taxes over the course of several years of ownership.

In the old way of doing things my home value was a set amount when I bought it, taxes were rated on that alone and then no matter how much I improved it I still couldn't get more than a 3% increase.

Whether we flip a home ourselves or have money to hire contracted improvements it seems this law going away in Florida may prevent neighborhoods from renovating and rehabbing like we need. Any thoughts on this?

How about letting the home buyers fix up their houses and neighborhood? What do you care, it's not like you will be living there?

[Cora72]

Originally Posted by mustgetoutofflorida

How about letting the home buyers fix up their houses and neighborhood? What do you care, it's not like you will be living there?

Your post is so irrelevant to things I have bullet pointed I don't even know where to begin Maybe you can elaborate on how I MYSELF, am not letting home buyers fix up their houses and how MY neighborhood isn't a neighborhood affected by this law? If it isn't I wouldn't care like you imply that I shouldn't. But I'm not seeing it. I'm sorry have I somehow slipped into a zone where I am unaffected by everything and my own neighborhood has no bearing on my life...