It seems a much needed Property Tax Solution has been found as the Florida Legislature passed its tax bill last week
The Legislature’s tax rollback could spur a little action by giving home shoppers a bit more money and a psychological boost. The waiting is soon to be over: Many buyers are likely to sit on the sidelines until Florida voters decide to approve a big tax exemption in January.
“What buyers and sellers are starving to see is something being done about taxes,” said a South Florida Realtor, who stated he had 300 e-mail responses by Friday morning. “Florida residents are convinced they will see big changes soon as this is finally being dealt with, and for many, that is all it takes to spark an influx of home sales.”
The reforms passed Thursday may prompt some buyers to think less about taking the plunge.
For more than a year, Adam Lubkin, 38, a renter in Miami, has considered buying a home in Fort Lauderdale to be closer to his parents. He waited during the tax debate in Tallahassee and now he is more positive about purchasing a home than before.
“I think it will have to shake out a little bit,” said Lubkin, who is in real estate development. “But did Thursday’s decision move me in the direction to buy a house? Absolutely.”
Turning renters into buyers would be significant, said Ronald Shuffield, president of EWM Realtors, which sells homes in Miami-Dade and Broward counties. He said that while sales have gone down, rentals through the multiple-listing service have actually increased 29 percent over the past year in Miami-Dade which is seen throughout the entire state of Florida. “That says to me we have a lot of people still here,” Shuffield said. The new tax bill should convert these renters into purchasers come next year.
Wait and see
However, the wait-and-see attitude among some home buyers is likely to continue until January, when voters decide to approve a system that offers the choice between Save Our Homes caps or a new super-sized tax exemption for homeowners.
“The real bad slump in the home resale market and the new home market will likely gain moment through the end of the year,” said a real estate analyst/consultant in Miami.
If the proposal passes in January, the super-sized tax exemption may reduce the sticker shock that prompted many prospective buyers to walk away after tallying up the home price, insurance costs and taxes. The exemption of 75 percent on the first $200,000 and 15 percent on the next $300,000 may give first-time homebuyers a better chance to get into the market. It also could budge some homeowners who were reluctant to move up before because of the prospect of a significantly higher tax bill.
Peter Zalewski, a real estate advisor in Bal Harbour who offers buyers distressed property, said the super-sized exemption may bring a burst of activity.
The broader market still faces a host of problems. There’s an affordability gap, with many buyers still priced out. PreConstructionPrograms.com is addressing the lack of affordable homes to first time home buyers and retirees moving to Florida who will live on a monthly budget while enjoying everything the Sunshine State has to offer.
Although Banks are tightening lending standards after giving out mortgages too freely these past few years, PreConstructionPrograms.com has negotiated with their Lenders an exclusive program that allows first time home buyers, investors, retirees, and anyone else who may want to purchase a new home an excellent opportunity with only $5000 total out of pocket .
“This is a good start,” said Gus Rubio, who heads real estate brokerage Coldwell Banker in Miami-Dade. “We’ll see what happens.”
