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I don't know why they didn't have something in it giving new home buyers say a 3 to 5 year reduced tax that would go up every year till it reached the current real values. This would have given the tax system time to reset as properties get sold. At least at some point they would be paying tax on what is the actual value of the property and not an artificially set number.
I am glad it passed though because if nothing else it will be the catalyst and some good can come out of it. It has to, there is no way things can remain like it is now.
I think you are right, it will be a catalyst for change. Once it is obvious that it has made the mess even worst, perhaps real reform can take place.
And hopefully a by product will be a further reduction in the credibility and power of the realtor lobby.
I honestly do not believe that change will come about until enough of your state's residents are impacted more adversely. The governmental officials on both the federal and state levels have been able to divert attention from the real problems. The ongoing attempts nationally to appease recession fears with the tax rebates and lowered interest rates on the federal level are supposed to correct the issues associated with the housing bust. In your state, portability and SOH are to appease those residents who have the loudest voices (the seniors who have lived in your state for ten or more years... the highest voting populace).
The interest rates will be lowered, but only the most credit worthy will be able to secure the loans. Motivated individuals wishing to live in a new climate and new environment will have great difficulty affording the housing despite the lowered interest rates. Those who do wish to buy a Florida home in 2008, will be buying a depreciable commodity that will continually lose value over what has been paid. The Florida resident who is finding home costs as unaffordable, and is trying to sell his/her home, is finding an ever-shrinking pool of buyers. Desperate times will create desperate reactions. The governments have been able to pass the "smoke and mirror" laws that appear to offer hope, but are the earmarks of desperation.
Why did Florida grow as it has? It was affordable. The climate was right. The oceans and beaches were accessible. It could be a land of opportunity.
Who should move to Florida? Those individuals who can afford to lose money and to realize that he/she will subsidize the current populace disproportionately.
I sure would love to live in the Florida of the 1990's. I sure would not want to be the person who must buy/sell a home or rental property in Florida today. I sure would not want to need to count upon the home equity accrued to supplement my retirement or personal income. I sure wish that buying real estate in beautiful Florida today would not be such a high risk proposition.
I honestly do not believe that change will come about until enough of your state's residents are impacted more adversely. The governmental officials on both the federal and state levels have been able to divert attention from the real problems. The ongoing attempts nationally to appease recession fears with the tax rebates and lowered interest rates on the federal level are supposed to correct the issues associated with the housing bust. In your state, portability and SOH are to appease those residents who have the loudest voices (the seniors who have lived in your state for ten or more years... the highest voting populace).
The interest rates will be lowered, but only the most credit worthy will be able to secure the loans. Motivated individuals wishing to live in a new climate and new environment will have great difficulty affording the housing despite the lowered interest rates. Those who do wish to buy a Florida home in 2008, will be buying a depreciable commodity that will continually lose value over what has been paid. The Florida resident who is finding home costs as unaffordable, and is trying to sell his/her home, is finding an ever-shrinking pool of buyers. Desperate times will create desperate reactions. The governments have been able to pass the "smoke and mirror" laws that appear to offer hope, but are the earmarks of desperation.
Why did Florida grow as it has? It was affordable. The climate was right. The oceans and beaches were accessible. It could be a land of opportunity.
Who should move to Florida? Those individuals who can afford to lose money and to realize that he/she will subsidize the current populace disproportionately.
I sure would love to live in the Florida of the 1990's. I sure would not want to be the person who must buy/sell a home or rental property in Florida today. I sure would not want to need to count upon the home equity accrued to supplement my retirement or personal income. I sure wish that buying real estate in beautiful Florida today would not be such a high risk proposition.
Very true. It was amazing for regular folks up until about 2003. In early 2003 we purchased a great 2.5 acre CBS house, large, well built, pool, great land, in a safe and stable area called Jupiter Farms for $325,000. Taxes were about $3000/year, insurance very affordable. My family who visited called it "a mansion". Maybe not, but it was a super property for the money.
Within a few years the entire area was inflated, flippers everywhere, new buyers paying $10,000 or more taxes for smaller houses.
Now the area is full of for sale and for rent signs, some vacant houses, neighbors on the edge financially, some foreclosed property....and sellers still asking double what they could hope to get.
When you look at how the finances of the nation and the real estate situation in Florida has changed in such a short time it is truly mind blowing.
I honestly do not believe that change will come about until enough of your state's residents are impacted more adversely. The governmental officials on both the federal and state levels have been able to divert attention from the real problems. The ongoing attempts nationally to appease recession fears with the tax rebates and lowered interest rates on the federal level are supposed to correct the issues associated with the housing bust. In your state, portability and SOH are to appease those residents who have the loudest voices (the seniors who have lived in your state for ten or more years... the highest voting populace).
The interest rates will be lowered, but only the most credit worthy will be able to secure the loans. Motivated individuals wishing to live in a new climate and new environment will have great difficulty affording the housing despite the lowered interest rates. Those who do wish to buy a Florida home in 2008, will be buying a depreciable commodity that will continually lose value over what has been paid. The Florida resident who is finding home costs as unaffordable, and is trying to sell his/her home, is finding an ever-shrinking pool of buyers. Desperate times will create desperate reactions. The governments have been able to pass the "smoke and mirror" laws that appear to offer hope, but are the earmarks of desperation.
Why did Florida grow as it has? It was affordable. The climate was right. The oceans and beaches were accessible. It could be a land of opportunity.
Who should move to Florida? Those individuals who can afford to lose money and to realize that he/she will subsidize the current populace disproportionately.
I sure would love to live in the Florida of the 1990's. I sure would not want to be the person who must buy/sell a home or rental property in Florida today. I sure would not want to need to count upon the home equity accrued to supplement my retirement or personal income. I sure wish that buying real estate in beautiful Florida today would not be such a high risk proposition.
Yea, you would have liked to been here in the 90's, look at the sales history of the house below in 13 years. It only took me a minute to find one, I could probably post hundreds. The price went up 500%. Problem is, the last buyer is the one left holding the bag. It was nuts for a while. I remember one condo opening and they were standing in line when the sales office opened like it was a Hanna Montana concert to buy. The news was covering it and the people would come running out waving a contract yelling "I got one on the seventh facing the ocean" Like they had won a lottery. It was unbelievable, most thought they would sell them in a few months and make a $100,000.
Thank you for the great insights. Your open mindedness and candor are much appreciated. I have received quite an education reading this thread. It appears that it may be many years until this real estate quandary will truly be resolved. It may be a long time before the costs and risks of buying a home in Florida are brought to predictable payments in an affordable environment. As it stands now, I am fortunate to have more time before I need to make the Florida decision... until then, all of my decisions to purchase will be on hold. Hopefully, the next few years bring resolution to the Florida real estate market.
That is an extreme idea to beat the system. I certainly don't want to have to buy and live in a cheap piece of real estate for a few years to establish my portability.
I hate that idea even more than I hate how unfair this entire tax system is.
I am currently renting and waiting for the market to finish tanking, when prices are normal again in this area I will buy a nice home for fair market value and my taxes will be reflected on that. I will not have to run around buying crapshacks to live in for a few years.
Me thinks your idea is to extreme.
I don't think the idea is extreme at all. I didn't say buy a crappy piece of real estate, I said a cheap piece of real estate. It makes all the sense in the world for buyers to buy a smaller, less expensive piece of real estate and live in it long enough to qualify for portability, then trade up to a nicer piece of real estate. If I were talking to a young couple now, I would definitely advise them to buy something small, with good resale potential and trade up in a few years. It lets them set their portability base low and keep it forever.
I don't think the idea is extreme at all. I didn't say buy a crappy piece of real estate, I said a cheap piece of real estate. It makes all the sense in the world for buyers to buy a smaller, less expensive piece of real estate and live in it long enough to qualify for portability, then trade up to a nicer piece of real estate. If I were talking to a young couple now, I would definitely advise them to buy something small, with good resale potential and trade up in a few years. It lets them set their portability base low and keep it forever.
You wouldn't have anything to take with you I don't think. The property isn't going up in value so you would have no SOH to take. Am I wrong?
You wouldn't have anything to take with you I don't think. The property isn't going up in value so you would have no SOH to take. Am I wrong?
If you bought a place for $150 and then traded up to a place that cost $250 you would be able to take your SOH basis with you.
An inexpensive piece of real estate would appreciate at the same level as the rest of the real estate market. I'm not talking about living in a crack house.
If you bought a place for $150 and then traded up to a place that cost $250 you would be able to take your SOH basis with you.
An inexpensive piece of real estate would appreciate at the same level as the rest of the real estate market. I'm not talking about living in a crack house.
Point is, it isn't going to appreciate at all probably for years and then not much those days are over. SOH is only a big deal when things go way or up causing your SOH to be large and now you can take it with you. That won't be the case. I believe if values went up only the usual 3% like they used to you wouldn't have any. Am I wrong? Go to one of those calculators found on most property appraisers sites and run some examples. I just did it using your numbers and you would save $200 on a $3600 tax bill assuming I did it correctly. Lets face it there are no tricks or free rides.
Point is, it isn't going to appreciate at all probably for years and then not much those days are over. SOH is only a big deal when things go way or up causing your SOH to be large and now you can take it with you. That won't be the case. I believe if values went up only the usual 3% like they used to you wouldn't have any. Am I wrong? Go to one of those calculators found on most property appraisers sites and run some examples. I just did it using your numbers and you would save $200 on a $3600 tax bill assuming I did it correctly. Lets face it there are no tricks or free rides.
It isn't just appreciation though. Folks wanting to trade up to a more expensive house will benefit as well.
I agree that the days of dramatic property increases are over for quite a while. This amendment is crazy because it addresses a problem that hardly exists anymore.
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Thanks for better educating me
extreme idea to beat the system. I certainly don't want to have to buy and live in a cheap piece of real estate for a few years to establish my portability.
