Comments on: Foreign Buyers Finding Deals in the Miami Condo Market http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/ Luxury Miami Condos in Miami, South Beach, Brickell and South Beach | Miami Condos Blog Wed, 17 Mar 2010 03:37:27 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: Steven http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-5747 Steven Wed, 21 May 2008 19:17:45 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-5747 I agree with those who spoke of high property tax being a turn-off to 2nd home buyers. Foreigners don't pay this kind of money (1.7-2%) of the "assessed valued". Of course, this money is needed to fund civil services such as schools, police, etc... The thing is it deters people from buying, ESPECIALLY retirees. They only have enough disposable income, right? Why not create income tax? Second homeowners and retirees would then buy, they don't pay income tax. I live in CA and want a 2nd home in Miami, but the property tax is so high, a huge monthly expense. As it is I pay 1.1% on my CA home, whichis do-able. My state income taxes (I make 65K) do not equal another 0.6% of the value of my home (500K). With all my write-offs I get the state income taxes down to like 1,200 total, perhaps if I got really creative I could get them down even further... something you CANNOT do with property taxes. Perhaps FL should reconsider so that residents have a sounder chance of becoming SECURE homeowners. And hey!... When you are unemployed you don't pay income tax, but you still pay property tax, think about it. I agree with those who spoke of high property tax being a turn-off to 2nd home buyers. Foreigners don’t pay this kind of money (1.7-2%) of the “assessed valued”. Of course, this money is needed to fund civil services such as schools, police, etc… The thing is it deters people from buying, ESPECIALLY retirees. They only have enough disposable income, right? Why not create income tax? Second homeowners and retirees would then buy, they don’t pay income tax. I live in CA and want a 2nd home in Miami, but the property tax is so high, a huge monthly expense. As it is I pay 1.1% on my CA home, whichis do-able. My state income taxes (I make 65K) do not equal another 0.6% of the value of my home (500K). With all my write-offs I get the state income taxes down to like 1,200 total, perhaps if I got really creative I could get them down even further… something you CANNOT do with property taxes.

Perhaps FL should reconsider so that residents have a sounder chance of becoming SECURE homeowners. And hey!… When you are unemployed you don’t pay income tax, but you still pay property tax, think about it.

]]> By: GORDON http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-4564 GORDON Wed, 16 Apr 2008 19:11:29 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-4564 In my opinion the inexpensive oceanfront and beachfront properties on Central Florida's east coast (45 minutes from Orlando and Disney) is by far the most bang for the buck without the overcrowding and crime of south Florida. Talk about location, location combined with value. Gordon In my opinion the inexpensive oceanfront and beachfront properties on Central Florida’s east coast (45 minutes from Orlando and Disney) is by far the most bang for the buck without the overcrowding and crime of south Florida. Talk about location, location combined with value.
Gordon

]]> By: Beyond The Numbers: Visualizing The Condo Crisis In Miami « The Magic City Harvard Lawyer: A High-Octane, Unfiltered Report From Miami, Florida http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2964 Beyond The Numbers: Visualizing The Condo Crisis In Miami « The Magic City Harvard Lawyer: A High-Octane, Unfiltered Report From Miami, Florida Wed, 05 Mar 2008 04:32:47 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2964 [...] of those who put up the money will never close on the buildings which they helped to finance.   In another of his posts, Lechuga observes sharply that “The Miami condo market is not a local market . . . it is [...] [...] of those who put up the money will never close on the buildings which they helped to finance.   In another of his posts, Lechuga observes sharply that “The Miami condo market is not a local market . . . it is [...]

]]> By: Alejandro Diaz-Bazan http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2809 Alejandro Diaz-Bazan Thu, 28 Feb 2008 18:34:44 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2809 Well Lucas I look forard to reading hte article on the WSJ. There was one today that was talking about Miami and it featured the Condo Vultures Well Lucas I look forard to reading hte article on the WSJ. There was one today that was talking about Miami and it featured the Condo Vultures

]]> By: Mikel http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2804 Mikel Thu, 28 Feb 2008 14:21:48 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2804 Raffi , It is NOT a deal when the dollar continues to drop. It is better to hold to euro denominated assets than dollar denominated assets, until the US gets a new president and there is a clearer picture of the future. Buying now is like being the first one to a party. Raffi ,
It is NOT a deal when the dollar continues to drop. It is better to hold to euro denominated assets than dollar denominated assets, until the US gets a new president and there is a clearer picture of the future.

Buying now is like being the first one to a party.

]]> By: Solution http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2741 Solution Tue, 26 Feb 2008 16:27:33 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2741 There is no realistic solution to eliminating the disparity by axing the cap. The only solution would be a legal challenge to have it thrown out. There is no realistic solution to eliminating the disparity by axing the cap. The only solution would be a legal challenge to have it thrown out.

]]> By: Dave http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2740 Dave Tue, 26 Feb 2008 14:34:48 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2740 The homestead exemption is not the main culprit here. The cap on reassessments for Florida residents is what causes the large disparities between what you pay and your neighbors pay for a similar property depending on when you bought your home. Unfortunately, the probability of that changing is remote, since those that bought many years ago and have a very low capped assessment are by and large older retired folks and no politician would commit suicide by attacking its unfairness. In point of fact, the recent referendum that was passed in the last election actually expands it by making such freezes portable. If that is a deal breaker for a non-resident, I would say they need to look elsewhere to buy a home for the foreseeable future. The homestead exemption is not the main culprit here. The cap on reassessments for Florida residents is what causes the large disparities between what you pay and your neighbors pay for a similar property depending on when you bought your home. Unfortunately, the probability of that changing is remote, since those that bought many years ago and have a very low capped assessment are by and large older retired folks and no politician would commit suicide by attacking its unfairness. In point of fact, the recent referendum that was passed in the last election actually expands it by making such freezes portable. If that is a deal breaker for a non-resident, I would say they need to look elsewhere to buy a home for the foreseeable future.

]]> By: Samir Patel http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2715 Samir Patel Mon, 25 Feb 2008 15:12:14 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2715 Taxes a la carte? haha. Taxes a la carte? haha.

]]> By: On-the-fence http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-2/#comment-2697 On-the-fence Sun, 24 Feb 2008 19:29:30 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2697 Would really like to see Miami succeed but with my close date nearing I’m not sure I want to proceed. Where is the logic in placing the lopsided tax burden on potential 2nd home buyers that will be far less demanding on city services (e.g. no kids in the school system)? Would really like to see Miami succeed but with my close date nearing I’m not sure I want to proceed. Where is the logic in placing the lopsided tax burden on potential 2nd home buyers that will be far less demanding on city services (e.g. no kids in the school system)?

]]> By: carbonblackcab http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/comment-page-1/#comment-2690 carbonblackcab Sun, 24 Feb 2008 15:52:17 +0000 http://www.miamicondoinvestments.com/2008/02/21/foreign-buyers-finding-deals-in-the-miami-condo-market/#comment-2690 The homestead exemption is what is driving up property taxes for new residents, non-residents and 2nd home owners. To give you an example of how bad things are, lets compare my prop taxes to my neighbors. I bought a townhouse in coconut grove in 2004 while my neighbor bought in 1997. I am paying $11K/year in taxes, while my neighbor is paying $4K/year. My neighbor has a homestead exepmtion and his prop taxes cannot rise more than 3% a year. My taxes are high as I had recently moved to FL from CA and had to pay taxes on the current market value. There is a HUGE number of people who are not paying their fair taxes. Only way to make up for that is to jack up the rates for others. IMHO, only way to fix the prop tax issue is to repeal the homestead exemption and come up with a system that is fair. I think there is a lawsuit against the Homestead Exemption filed by some canadian home owners. I dont know the status of that suit, but I hope that suit overturns the homestead exemption. The homestead exemption is what is driving up property taxes for new residents, non-residents and 2nd home owners. To give you an example of how bad things are, lets compare my prop taxes to my neighbors. I bought a townhouse in coconut grove in 2004 while my neighbor bought in 1997. I am paying $11K/year in taxes, while my neighbor is paying $4K/year. My neighbor has a homestead exepmtion and his prop taxes cannot rise more than 3% a year. My taxes are high as I had recently moved to FL from CA and had to pay taxes on the current market value.

There is a HUGE number of people who are not paying their fair taxes. Only way to make up for that is to jack up the rates for others.

IMHO, only way to fix the prop tax issue is to repeal the homestead exemption and come up with a system that is fair.

I think there is a lawsuit against the Homestead Exemption filed by some canadian home owners. I dont know the status of that suit, but I hope that suit overturns the homestead exemption.

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