A couple of weeks ago, I had put my hand on a list from Bank United, where they were "blacklisting" many condominium buildings in South Florida, mostly in the area of downtown Miami and Brickell Avenue.

This is one more issue that real estate owners have to tackle today.

Finding a buyer is difficult enough. Finding a cash buyer for a unit at one of these buildings, is way harder.

Loans to foreign nationals are being made but at a much higher interest rate, and with larger down payments and this has discouraged many such buyers.

This new issue is complicating ever more the situation in areas already hit by foreclosures, high interest mortgages, and buyers' backing out of their contracts.

The problem is spreading, as I found out today in an article published in the

Daily Business Review:

February 13, 2008 By: Polyana da Costa

Beatriz Bustos has been trying to sell her Brickell condo for about a year.She has found a few prospects and has gotten close to sealing a deal several times but all the potential buyers ran into the same obstacle — they couldn't get financing.

"No one qualifies for financing," said Bustos, who is facing foreclosure.

But the problem isn't the buyers, it's the building — the Vue at Brickell.

What Bustos didn't realize is that her building has been blacklisted by lenders as have dozens of other condos in South Florida. Banks and mortgage lenders compile lists of buildings they find too risky for lending, and they refuse to finance purchases there.

And that further complicates the obstacles faced by owners of condo
units in these buildings.

Bustos bought the condo for $690,000 as an investment in 2005 and now can't afford the monthly expenses of nearly $5,000 that include two mortgages and association fees.

It's already tough to find buyers in the current market. And this drastically limits options. Bustos and other condo owners like her can't refinance, can't sell and unless they find a cash buyer are likely headed to foreclosure.

The Vue at Brickell is one of dozens of condos across mortgages.

In the Vue's case, the "high foreclosure rate and declining value" in the building is cited by BankUnited as the main reasons the property should be shunned.

The Vue is also on a list maintained by Popular Mortgage, but brokers say the project is widely avoided in the lending industry.
But the Vue is far from being alone.

Local and national lenders continue to add to the dozens of projects to the lists of condos that don't meet their loan criteria. Banks and other real estate lenders are loath to admit they have inventoried projects they refuse to lend in. To avoid controversy, some lenders instead say they keep lists of eligible projects.

The Daily Business Review obtained lists by three large local lenders, including Washington Mutual. Executives at other financial institutions refused to confirm their banks maintain such lists or did not want to comment for this article.

"Many of the lenders are not open about it," said one mortgage broker who asked not to be identified. "But when you send them an e-mail to inquire about a loan and they respond by saying they are not lending in that building, you assume they have an internal list."

These kinds of lists have always existed, said Michel Fayad, managing director of Miami-based American Mortgage Lending, but they were much shorter and didn't have as much impact on a lender's decisions in the past. The downturn in residential real estate — in particular the
condo market — has lenders on high alert.

The Washington Mutual document, which includes eligible and non-eligible projects nationwide, cites more than 40 ineligible projects in Miami-Dade County, about 25 ineligible in Palm Beach
County and about a dozen projects in Broward County.

A BankUnited list shows the majority of the projects the bank has categorized as "non-permissible-condominium projects," are in Miami. Most were added to the list in January.

BankUnited's list also includes the reasons the bank considers the various projects off limits.

In most cases properties are to be avoided for "high investor concentration and declining market value," but some are included because of pending litigation, delinquency issues with the homeowner's association, high foreclosure rates or how many loans a bank already has on units in the building.

The lists include finished buildings and projects still under development.

Prominent projects on BankUnited's list include the Related Group's 50 Biscayne and 500 Brickell; Terra Group's 600 Biscayne and 900 Biscayne, and Cabi Developers' Everglades on the Bay.

Executives at the sales centers for the projects declined to comment and messages left for the developers were not returned.
"Nonwarrantable"

There are a variety of reasons why a building would be branded as ineligible for lending. Most factors reflect criteria set by Fannie Mae and Freddie Mac, but some are based on lenders' internal risk-based criteria.

Loans that meet the standards of Fannie Mae [Federal National Mortgage Association] and Freddie Mac [Federal Home Mortgage Corp.] are eligible to be sold in the secondary market to the two government-sponsored but privately owned mortgage finance giants. For that reason, lenders have always found it safer to issue loans in projects that are eligible to be sold to those companies.

"Lenders need an exit strategy," said Grant Stern, owner of Miami-based Morningside Mortgage Corp. "If a condo is nonwarrantable they may lose that exit strategy."

A building may be deemed "nonwarrantable" if a large number of its condo units are owned by investors. About 70 percent of the building must be owner-occupied for it to be considered suitable to be sold to Fannie or Freddie, Stern said.

The number of pre-sales; litigation involving developers, condo boards, vendors or unit owners; condo association financial problems; and many other factors are also used to measure the risk.

Fannie Mae maintains a list of approved projects and provides lenders with the guidelines and a questionnaire to determine project's eligibility.

A project's eligibility can be revised as the status of the building changes. When a project is found ineligible under Fannie or Freddie guidelines, it may or may not affect the lender's decision but in the past six months the ineligible status has caused many lenders to stay away from those projects, Fayad said.

Lenders also are making decisions exclusive of outside guidelines, said Fayad, who used to work with 45 lenders willing to provide financing in a variety condo projects. That list of lenders has dwindled to about 20.

South Florida mortgage brokers say three Miami projects are notorious for being rejected by lenders — Jade at Brickell Bay, The Club at Brickell Bay and The Vue at Brickell.

The Jade and The Club at Brickell appear on at least three lists of projects ineligible for financing, including lists from BankUnited, Washington Mutual and Popular Mortgage.

Ocean View, a Sunny Isles Beach condo conversion project, appears in multiple lists, according to mortgage brokers, including one maintained by local lender Popular Mortgage.

A West Palm Beach condo conversion project, 2560 S. Ocean Drive, also appears on multiple lists. Representatives of the project's developer, Miami-based VH Capital Partners, did not return calls by deadline. Not all hope is lost

As difficult as it is to find financing, there is hope. Even in extraordinary cases like the Jade, buyers are still able to get financing, but a substantial down payment is required, Fayad said.
He said after many attempts he found a lender willing to finance a Jade condo for a buyer who was buying a unit out of foreclosure from a bank.

Miami-based Sunset Lending approved the loan, but the buyer had to put 40 percent down.

Foreign buyers, who want to take advantage of a weak dollar and who could rescue many condo developers in need of sales, are being asked to put down as much as 70 percent of the purchase price and many lenders won't provide financing to them at all, Fayad said.

Projects considered ineligible for financing by traditional lenders are finding more acceptance from "hard-money lenders," he said, but that comes with a price. Hard-money lenders normally are private investors willing to issue loans on real estate properties that are nonconforming with bank standards. They normally lend on shorter terms with higher interest rates and require lenders to put at least 30 percent down.

Buyers that normally would pay a 5 percent to 6 percent interest rate, should expect to pay more than twice as much when borrowing from "hard-money" lenders. With proper timing, some buyers and owners still might find financing, even if their building does not meet some of the lending guidelines. "I would like to think it can't get any worse," Fayad said. "But some lenders are still catching up. You may find a project listed as ineligible with one lender, but while the other lenders catch up, you may be able to get something for that building. Once they all catch up it will be much tougher."

Real estate broker Alejandro Diaz-Bazan, principal of Miami-based South Florida Foreclosure Group, said the condo market is being forced into a cash-buyer's market.
He is selective of potential buyers he takes on and requires they be pre-approved for loans. Even his high-income buyers are finding limited financing.
"They are putting down 40 to 50 percent of the loan value" he said, citing one client who had a Wachovia account in the seven digits and had to put down 50 percent on a recent purchase of a Miami condominium.

In many cases, if it is widely known that a building has been flagged, a lender that may not have compiled a list won't even take the loan application, he said. "It hurts the value in the building
tremendously." For that reason lenders tend to be careful how they categorize ineligible projects.
Melissa Gracey, a spokeswoman for BankUnited, said the bank's list is "risk-based."

"It's based on a lot of different factors and a lot of them mirror criteria from Fannie Mae," she said. Gracey said she didn't have more information about the lists and that the bank would not have a mortgage department representative available for comment by deadline.

Washington Mutual and Popular Mortgage executives also did not return calls for comment.
Developers of about a dozen prominent projects on the ineligible lists also did not return calls seeking comment on how the lending cutbacks affect their projects. But in many cases, developers are no longer involved and have sold out the buildings.

Before lenders begin to reconsider lending in the troubled buildings, there would have to be a sign of stability, Fayad said. The number of foreclosures would have to drop; more units would have to be owned by residents, not investors; and the condo market in general would need to improve.

But for now, lenders have to get used to realistic lending practices, Fayad said.

"These guidelines always existed but lenders were willing to go the extra mile," he said. "Now they are not, and we are back to giving mortgages to people who should have mortgages." In other words, speculators and risky borrowers need not apply.
"This is just the result of mistakes that should not have been made. A lot of people will be at loss before this market adjusts."

Henry B . Nathan is a Licensed Florida Realtor. Please visit my website to search for:

Florida Condos, Aventura Condos, Fort Lauderdale Condos, Miami

Last Chance...

Last chance to file HOMESTEAD EXEMPTION

You must file before March 1, 2008.

Information for Dade County Homeowners.

Property appraiser website:

Applications may be filed with the Miami-Dade Property Appraiser's Office no later than March 1, 2008. Applications can be filed in person at:

Stephen P Clark Center (Government Center)

111 NW 1 Street, 7th Floor.

Miami, FL 33128.

You can also apply for the exemption via U.S. Postal Mail by sending the application to:

Miami-Dade County

Property Appraisal Department

P.O. Box 013140,

Miami, FL 33101-3140

In addition to the application, you must provide one proof of ownership, and two proofs of Florida residency dated prior to January 1, 2008.

Any one of the following Proofs of Ownership can be submitted:

Warranty Deed

Property Tax bill

Notice of Proposed Property Taxes

Homestead Exemption

Automatic Renewal Receipt

Computer Public Value Inquiry printout

Any two of the following Proofs of Florida Residence can be submitted:

Driver's License

Automobile Registration (no lease)

Voter Registration

1040 Income Tax Return filed in Florida or W-2 with Florida address

Intangible Tax Return filed from Florida

Florida Unemployment Compensation Registration

Employment letter with Employer's letterhead

Child School report card or School letter attesting child's registration

Moving van receipt from another county or state

Doctor's letter with Doctor's letterhead

Church letter with Church letterhead

SSA-1099 fiscal year Social Security Statement addressed in Florida

Broward residents can apply online.

Go to: https://www.bcpasecure.net/homestead/index.cfm

Remember that Homestead Exemption has been recently increased by an additional $25,000 (not applicable to school taxes). Homestead Exemption gives the homeowner a valuable protection against future tax increases. Assessed value increases are limited to 3% per year.

You must be a Florida resident, and a US. Citizen or US permanent resident with a 'green card' to qualify for Homestead Exemption.

Henry B. Nathan is a licensed Florida Real Estate Professional.

Please visit my website to search for:

Aventura Condos, Miami Beach Condos, Fort Lauderdale Condos, Hollywood Condos

Portability.... Some Questions....

Questions about 'Portability' in Florida Real Estate Taxes

With the approval of the property tax reform on January 29, many homeowners saw a new window of opportunity. Specially ‘empty nesters’ living in large homes hoped to be able to downgrade and move to smaller places; or the opposite: new ‘up and comers’ prevented from moving to better homes by the fear of very large increases in their tax bills will have a great incentive now.

How will this ‘portability’ work?

There are two elements to be considered in a typical “save-our-homes” tax bill:

The just value or market value,

and the assessed value, which is reached after calculating the maximum yearly increase of 3% since the homesteaded property was purchased.

The ‘portability’ amount is the tax advantage that a ‘save-our-home’ beneficiary can ‘transport’ when moving to a new home, up to a maximum of $ 500,000. It is equivalent to the difference between the just value and the assessed value.

So far so good, but…

A lawsuit has been filed in state court, by a group of citizens who want to overturn the whole ‘save-our-homes’ amendment. They are now saying that they will possibly include the new ‘portability’ exemption in their lawsuit.

Florida Governor, Charles Crist and supporters of the new amendment have stated that the Save-our-homes amendment withstood similar court challenges in the past. However, many Constitutional Law experts think that the portability amendment could be successfully challenged as violating non-residents owners and first time home buyers.

This scenario is adding a large element of uncertainty. People who move now are faced with the possibility of losing the tax deduction if a judge rules that the ‘portability’ amendment is unconstitutional. In this case they would be stuck in a new home, having lost the advantage that was their main reason to move in the first place.

The possibility of derailing the new amendment provision is real, as per the words of Broward County Property Appraiser. However it must be implemented since it is law.

Meanwhile, a curious and unusual issue is faced by County Appraisers. An influx of people inquiring about raising the present “just value” of their homes. That would automatically increase the amount of tax relief that they could transfer to the purchase of a new home.

Since the transferable benefit is calculated by the difference between “just value” and assessed value, raising the “just value” would do the trick.

There are some objections about the validity of these claims. Complaints filed by homeowners have always been about their property being valued too high, not too low. There are some technical issues since the Value Adjustment Board, who decides about these complaints is supposed to decide only if the property is “over assessed”.

So much for the absurdities and inequities that plague much of our tax system.

Henry B. Nathan is a Real Estate Professional. Please visit my website:
www.condo-southflorida.com

Updating information about Florida property taxes after Jan.29 amendment approval.

On January 29, 2008, a constitutional amendment was approved by Florida voters.

It changed substantially the structure of the homestead and “save-our-home” exemptions. Here is where we stand now:

Homestead exemption.

For Florida residents who have filed for this exemption.

- $ 25,000 basic exemption

- Additional $ 25,000 for all homes assessed at $ 75,000 or more. This additional exemption does not apply on the school portion of the tax bill. (about 36%)

- Additional $ 25,000 Senior Citizen exemption. Must be at least 65 years old, and their total household income does not exceed $ 24,214 (amount yearly adjusted for inflation).

This exemption must be renewed annually, including IRS tax return or proof of non-filing.

- Additional $ 500 Widow/widower exemption. Not eligible if remarried.

- Additional $ 500 Disability/Blindness exemption.

- Additional $ 5,000 Veteran Disability exemption. Higher if combat disabled veteran.

- Full Exemption for Veteran service-connected total and permanent disability.

- Full Exemption for totally and permanently disabled persons. Subject to yearly income not exceeding $ 23,604 (adjustable for inflation)

- “Grammy Flat” exemption. When building additions to provide living quarters for parents or grandparents, exemption for the amount of the new construction, up to 20% of the homestead value.

Business Equipment Exemption

A new $ 25,000 exemption. Currently all businesses are subject to an annual tax on tangible property. Small businesses with less than $ 25,000 in tangible property, are not required to file anymore tangible property tax returns.

Save-our-homes

This amendment, approved in 1992 limits the increase of assessed values of homesteaded homes to 3% per year.

Portability of Save-our-homes.

Homesteaded owners can move this benefit from one homesteaded home to another, up to $ 500,000. To be eligible, the new property should be purchased within two years of abandoning the Homestead of the previous home. This portability can be used an unlimited amount of times. One way to calculate this is to calculate 85% of the new home purchase price, then divide that number by the 2007 “just value” of your current home. Multiply that amount by your present "save-our-homes" value and the final result will be your estimated new Save our Home value. (this is only an approximate calculation). Another way to explain is: The difference between the "just value" of your home and the "save-our-homes" assessed value can be transferred as a reduction to your new home assessed value, up to $ 500,000. We anticipate some confusion to be clarified by Florida Department of Revenue advisory opinions.

All other properties

that do not have the homestead protection, such as commercial real estate, rental properties, second homes, investment properties have a new protection. Their taxable value cannot increase more than 10% per year. This cap does not apply to the school portion of the tax bill.

Henry B. Nathan is a licensed real estate agent and mortgage broker in the state of Florida.
Please visit my website:
http://www.condo-southflorida.com

Just completed, in North Bay Village, a magnificent project, the 360, still has a few units for sale.
They have recently adjusted their prices and that means great deals for buyers.

One of the most beautiful developments in that great location, here is an overview of the 360 condos:

414 luxury waterfront condominium residences on 6.8 acres

West Tower (A) 15 stories with 279 condominium homes
East Tower (B) 12 stories with 99 condominium homes
Marina Residences: 3 stories with 36 marina condominium homes
Architect: Corwil Architect Inc.

360 Condos Amenities:

Elegant covered entrance
Full time valet service
Elevated pool with spa and bayviews in The West Tower
Bayside Pool and clubhouse East Tower
Private Marina and shorefront promenades
State-of-the-art fitness center with men and women's saunas and locker rooms
Private marina
Gated Entrance
24 hr. guard service at entry gate, each lobby, and roving patrol
Over 6.5 acres of lush landscaping surroundings
Garage Parking.

360 Condos Interior Features

Elegant 16" x 16" Marble Flooring in Kitchen and Foyer
Choice of Designer Selected Carpeting in All Bedrooms and Living Areas
Pre-Wired for Ceiling Fans in All Bedrooms and Living Room
Braced Outlet for Lighting Fixture in Dining and Breakfast Areas (per plan)
Pre-Wired for Cable Outlets in All Bedrooms and Living Room
Pre-Wired with Category 5 High-Speed Wiring for Data/Voice Transmission In All Bedrooms, Living Room and Kitchen
Textured Ceilings and Smooth Walls throughout Living Areas
Impact Resistant, Floor-to-Ceiling Sliding Glass Doors
Ventilated Closet Shelving
Tinted Glass Balcony Railings
Oversized Luxurious Balconies
Full-Size Stackable G.E. Washer and Dryer
High-Efficiency Central Air Conditioning and Heating System
Marble Window Sills
Decora Light Switches
Fire Protection Sprinkler System throughout and Smoke Detectors
Custom Designed Kitchen Features
Stainless Steel G.E. Profile Appliance Package: 22 Cu. Ft. Side By Side
Refrigerator With Ice and Water in Door
Multi-Cycle Pot Scrubbing Dishwasher
Built-In Microwave Oven with Integral Hood and Light
Self-Cleaning Electric Range with Smooth Porcelain Cooktop
Contemporary Custom-Built Cabinetry with Glass Doors and Stainless Finish Pulls
Granite Countertops with Backsplash (choice of 2 colors)
Elevated Breakfast Countertop (per plan)
Stainless Steel Undermount Sink with Moen Chrome Faucet and Food Disposal
Custom Designed Bath Features:
16 x 16 Marble in Master Bath, Floor to Ceiling in Shower
Roman Tub with Whirlpool Jets in Master Bath
Glass Shower Enclosure in Master Bath
36 Raised Custom-Built Double Vanities in Master Bath
8 x 8 White Gloss Ceramic Tile on diagonal in Secondary Baths
Contemporary Custom-Built Cabinetry
Cultured Marble Vanity Tops with Bullnose Edge
Moen Villeto Series Faucets and Accessories in All Baths
Medicine Cabinet
Oversized Mirrors
Vanity Lighting
Halogen Track Lighting

Models description

RESIDENCE A-1
1 bedroom, 1.5 baths
994 sq.ft. total, 900 a/c

RESIDENCE B-1
2 bedrooms, 2 baths
1,426 sq.ft. total, 1,252 a/c

RESIDENCE B-2
2 bedrooms, 2 baths
1,569 sq.ft. total, 1,303 a/c

RESIDENCE B-3
2 bedrooms, 2 baths
1,395 sq.ft. total, 1,232 a/c

RESIDENCE C-1
2 bedrooms + den, 2 baths
(3rd bedroom option)
1,752 sq.ft. total, 1,557 a/c

RESIDENCE C-3
2 bedrooms + den, 2.5 baths
1,873 sq.ft. total, 1,692 a/c

RESIDENCE C-4
2 bedrooms + den, 2.5 baths
(2 split Masters)
1,966 sq.ft. total, 1,800 a/c

Marina Residence
2 bedroom + den, 2 baths
(3rd bedroom option)
1,737 Sq.ft. total, 1,431 a/c

Please look for more great developments at:

http://www.condo-southflorida.com/precon_2_1.php

www.condo-southflorida.com is a well recognized website dedicated to bring buyers the most updated and complete information about:

Aventura Condos, Hallandale Condos, Fort Lauderdale Condos, Miami Condos

Three judgments in Condo Buyers vs Developers lawsuits

I have found some very interesting information in a business law publication.

Daily Business Review January 17, 2008

By: Polyana da Costa

Is there a way out? That's a question many buyers under contract to purchase condominium units in South Florida asked their attorneys as closing time approached.

In an overwhelming number of cases, attorneys said yes to their clients and filed suits against the developers, but now the question is — will that work?

Few court orders — that might serve as precedent to other cases after the appeal process — have come out since a wave of lawsuits alleging breach of contract for many different reasons were filed.
Out of three recent judgments in Florida, one favored the developer and two others favored the buyers:

• D&T Properties v. Marina Grande Associates Ltd. — Palm Beach Circuit Judge Jonathan Gerber issued a final judgment after a nonjury trial in July stating the buyer was not entitled to cancel the contract based on an increase in condo assessments because the buyer could afford the increases. The case is being appealed in the 4th District Court of Appeal.

• Pugliese v. Pukka Development — U.S. Magistrate Judge Frank Lynch Jr. issued a summary judgment in October that found the buyer was entitled to be refunded the deposit because the project was not exempt from the federal Interstate Land Sales Full Disclosure Act.

• Meridian Ventures LLC v. One North Ocean LLC — U.S. District Court Judge Daniel T.K. Hurley in December issued a summary judgment favoring the buyer in a similar case. Projects with fewer than 100 units were believed to be exempt from the federal act. The federal court found the two projects were exempt from some but not all provisions in the act.

The two cases favoring buyers also are being appealed and have raised concerns among some attorneys and developers.

Gary Saul, a Greenberg Traurig attorney who represents developers, wrote on the firm's Web site in October that the Pukka case was significant and was being aggressively appealed.

"If the Pukka order is upheld by the federal appeals court, it likely will have a significant impact on the ability to enforce contracts presently utilizing the One Hundred Lot exemption," Saul wrote.

Saul said in a phone interview that the "Pukka decision was contrary to existing Florida case law and the opinion of the director" of the Department of Housing and Urban Development.

Saul said the firm has won many summary judgment hearings and motions on behalf of developers. He said they were "little victories" and declined to name or discuss the cases in general.

Although the cases being decided will help shape future decisions, it's too early to tell the outcome of hundreds of other lawsuits.

Most likely, buyers will have a difficult time trying to win condo cases, said Tom Ringel, a partner with Markowitz Davis Ringel & Trusty in Miami.

"Most contracts are very one-sided contracts," he said. "They were written for developers and are there to protect developers. While some buildings may have special circumstances, in general it is very difficult to litigate this issue."
Ringel said he has received several phone calls from buyers wanting out of their contracts, but in most instances he does not take the case.

"I don't want to take a case and make them pay if I know they won't win," he said.

Bart Houston, an attorney at Adorno & Yoss in Fort Lauderdale, agrees with Ringel but said there is room for negotiation with developers.

Rather than taking the cases to court, he has recently helped some buyers work out settlement agreements with developers.

The agreements can't be disclosed, but he said they involved buyers accepting refunds less than the full deposit or developers agreeing to give the buyer a discount on the unit.

"It's a case-by-case basis, but I advised them to settle based on my review of the complaint, an estimation of what it would cost to litigate and the amount of the deposit," Houston said.

Fighting to get out of a condo contract can cost buyers anywhere from $10,000 in simpler cases to $60,000 in cases with deposits of about $300,000 to $400,000 at stake, according to attorney Jared H. Beck of Beck & Lee Business Trial Lawyers in Miami. On a contingency basis, most attorneys would charge about 30 percent to 40 percent of the refunded deposit, he said.

The litigation process on most of the condo contract lawsuits is likely to be lengthy — about two or three years if filed in state court and longer in federal court, Houston said.

"The litigation parties that are smart are going to get into mediation pretty quickly," he said.

Developers will be hurt the most by the delay because they won't be able to sell the units while they are being disputed in court, which will make lenders impatient and ask to be repaid, Houston said.

Lenders also have gotten in the way of developers and buyers who want to settle, said Robert Cooper, an Aventura attorney who has filed dozens of lawsuits on a contingency basis for condo contract holders against developers.

"I have talked to a major developer who wants to go to mediation, and the contract requires mediation before a suit is filed, but he said he can't negotiate because of the lender," he said.

Cooper did not disclose the developer's name.

Lenders have assignment rights to contracts as they have rights to the real estate, Cooper said.

"They can't do anything without the lenders' approval, and from what I've heard the lenders are not giving them the cooperation they need to deal with this market," he said.

Cooper has settled about 20 cases, which he considers a small portion of the lawsuits involving multiple buyers that he has filed.

Most of the developers willing to settle are those who have closed on about 70 percent of the units in a building because the main construction loan has been paid off, he said.

Cooper is more optimistic about condo lawsuit outcomes.

Developers' contracts are indeed written in language that favors the developer, Cooper said. But in many cases "developers overreached in trying to protect themselves so much that they created unenforceable contracts."

"I call them illusory contracts, meaning the developer used overreaching language and put in a provision that said they could change anything they wanted including square footage, finishes, colors, anything," he said.

Leading luxury condo builder Related Group used a contract like that in most if not all of its South Florida developments. Based on his review of dozens of local contracts, Cooper said other developers have used the same contract in their developments. He declined to name others.

Other attorneys who did not want to be identified said some projects are known to have "bad" contracts and "good" contracts.

The "good" contracts, in the eyes of attorneys, were well-written to protect the developer without overreaching and make it difficult for a buyer to get out. Among them are the Edgewater, a 307-unit development in West Palm Beach; Vintage at Lighthouse Point, a townhouse community by WCI Communities; Orchid Grove, a development in Pompano Beach by Tarragon; and the Paradiso condo in Miami Beach.

Attorneys say they are being selective despite the large number of lawsuits being filed.

Beck said he is handling several cases on behalf of buyers who want out. But only 10 percent of the numerous inquiries he gets each week represent a viable claim.

"A lot of the cases that don't represent valid claims may end up in court," he said. "But you are also going to see a number of cases where buyers are successful — primarily in areas where something substantial was altered in the project and those that were not delivered in time."

Among the most common claims used in contract cancellation lawsuits are:

• Material and adverse changes — buyers can cancel contracts when "material and adverse changes" were made to condo documents filed with the state. It's up to the courts to decide whether a change was "adverse." Lawsuits claim changes that vary from square footage to condo association fee increases.

In the Marina Grande ruling, the judge found the change was not adverse to the buyer because the buyer could afford to pay.

"Marina Grande will be a very important decision," said Beck, who has been watching the cases closely. "Regardless of whether the courts uphold the result or not, I don't think the buyer's personal situation should have much to do with the decision."

Cooper agreed.

"It's basically the same as leasing a car and having a bill sent to you for twice the amount and being required to pay because you can afford it," he said.

• Interstate Land Sales Act — A 1968 federal law to protect land buyers. The law has been applied to condos and has several provisions including fraud related to misrepresentations in the contract, a requirement to give the buyer 20 days written notice in case the buyer is in default and a requirement to file certain property documents before construction. Developers are exempt from the act under certain circumstances, including a commitment to deliver a unit within two years.

"It's very risky to promise a building in two years, and many of those are being challenged in court," Beck said.

In some cases, developers have found their way around the two-year commitment.

"Developers were looking further ahead," Houston said. "If they knew they wouldn't complete the unit, they sent out a letter to the buyer saying 'we've decided to give you an upgrade but we need an extension' and buyers would sign accepting the extension."

One could argue that's deceptive trade, and buyers would have a good chance of winning the case, Houston said.

Many of the lawsuits being filed revolve around the complex federal act and its exemptions.

Some developers believed they were exempt from the act and didn't comply with some aspects of it. Now many attorneys are relying on that to get their clients out of contract.

Please visit my website: www. condo-southflorida.com to find out more about:

Aventura Condos - Sunny Isles Condos - Miami Condos

Citizens Against Excessive Taxes

Cut Property Taxes Now is a very serious citizens initiative which proposal is on the web at:
www.cutpropertytaxesnow

I consider this tax reduction package one of the most interesting and I tend to support it.

Notwithstanding that I will possibly vote YES on January 29th, to the proposed amendments on the present property tax system, I believe that this new initiative would be the complement needed if we want to really get serious about reforming the system in an equitable way.

The January 29th ballot would be mostly about the "portability" of the "save-our-homes" protection. This will perfect and consolidate a provision that has "saved the homes" of many Florida residents against the continuous greed of local government.

However the inequity of the system is blatant. Non residents, snowbirds, new home buyers, businesses, investors, are paying a much higher share of local property taxes, without enjoying any additional privilege. This could even be a challenge to the constitutionality of the "save-our-homes" protection if we do not address it now.

By limiting the taxation power of cities and counties, the new initiative could be the shot in the arm that Florida Real Estate is desperately needing. And a great relief to our middle class.

In effect, all the roll backs voted by the legislature and even the new January 29th amendment, if approved, can be easily bypassed by simply increasing the tax rates. To explain it more in detail, your home assessed value can stay the same or be reduced but your taxes can still go up if the tax percentage (millage) applied in calculating your taxes is increased.

The new initiatives addresses this loophole.

They need 650,000 signatures by January 29th.

They have about 75,000 now.

You can watch their video at:

http://www.youtube.com/cutpropertytaxesnow

You can also make a small contribution on their website: www.cutpropertytaxesnow.com

I am not a friend of any of the people or groups that have put together this initiative.
I have written about the Florida property tax issue and I believe that it is a major problem that affect the lives of all Florida property owners.

If you have any comments, either negative or positive, please post it here.

I am a Licensed Real Estate Professional in Florida.
My website is: www.condo-southflorida.com

Property Tax Reform?

On January 29th, 2008, a Florida Property Tax Reform proposal will go on the ballot.
A 60% majority of votes is needed to pass the reforms approved by the Legislators in October.

An extended campaign by Florida's Governor, with the support of Florida Realtors Association is under way.

My opinion?

Although pathetically insufficient and inadequate, I am seriously thinking of voting yes.
Why? The reduction of yearly taxes to the average homestead homeowner will in the best case reach about $ 220 per year. Non residents, investors, business real estate owners will see no improvement at all.

The possibility of the cities and counties bypassing the tax reduction by increasing their tax rate will probably wipe out all effectiveness of even this small relief, and the "drop as a rock" promise will just be a delusion.

However, the portability of the "save our homes" protection has been reasonably addressed and that will be an important factor in the revival of real estate in our state. Some people will be able to upgrade or downgrade on their present homes without the fear of losing this benefit.
How much will that affect the market? It remains to be seen, but it will definitely be a factor.

There are other proposals which could go on a new ballot in November 2008. One of them is the "cut property taxes now" which should limit the maximum of taxes paid to 1.35% per year on the taxable value. This would also cover snowbirds, investors, businesses, and new home buyers. It should be a much more realistic way of addressing the free spending of our
governments, avoiding loop holes and confusions. Somehow in the same way as California has successfully tackled this issue. And it will attenuate the inequity of the present tax laws.

Therefore, since we accomplish just a step ahead and leave the door open to more agressive
solutions, I am seriously thinking of voting yes on January 29.

Untangling Florida Property Tax Riddle:

A) First we had the Florida Legislature rolling back property taxes (to their 2006 level!). However it left the door open for cities to override the rollback by a two third majority vote, which was actually done by a few of them.

Then they put on the January 2008 ballot a package of tax relief which included raising the homestead exemption to 75% of the first $ 200,000 of property value, then 15% on the next$ 300,000. Beneficiaries of "save our homes" would lose that benefit if they opted for the homestead exemption increase. We called that "the poison pill".

B) On October 29, after a judge had thrown out the ballot package, due to its confusing language, and weeks of indecision, the Legislature finally approved a new ballot proposal which consists of:

- Increasing the homestead exemption by $ 25,000, not applicable to school taxes, which would reduce it to a total of $ 40,000 approximately, instead of the present $25,000 exemption? The savings would amount to an average of $ 220 per year said the legislature.

- Establishing the 'portability' of the 'save our homes' protection, up to $ 500,000

- Putting a cap of 10% on yearly increases of assessed value of non homestead and commercial properties.

We called this proposal: the 'drop like a pebble'.

C) At the end of November 2007, a coalition of different group was starting to collect the 611,000 signatures needed to put a new tax reform project on November 2008 ballot.

The new proposal consists mainly of imposing a property tax limit of 1.35% per year on the taxable value of on all properties, including non-homestead and commercial real estate.

It would keep the 'save our home' protection. The sponsors claimed that it would reduce the average tax bill by 26%.

In this proposal, there is no mention of 'portability' of the 'save our homes', no protection against violent raises of property value like those that hit us between 2000 and 2005.

The sponsors called it: 'cut property taxes now' and any owner can add his signature on their website.

D) A new initiative is pending review from the Taxation and Budget Reform Commission.

It would eliminate all Florida school taxes and replace them by expanding the Florida sales taxes to include services.

The background of all these proposals is the general opposition of public employees, and local governments to anything that would have any meaningful impact on their spending.

They are actively campaigning with their eternal threats of crippling education and schools, cutting back on police department, ambulances, and fire departments.

I am not impressed. And I will not buy into their menaces. Florida budget has bubbled to levels we wouldn't have dreamed about a few years ago. At the same time property tax collections have doubled during the last five years, from about 16 billion to more than 30 billion. So what are these complaints all about when we try to roll back a couple of billions for the sake of our state and our people's economy?

It's about the ever-increasing public sector, with its dozens of cities, bureaucracies, police and fire departments, mayors and commissioners, which is a luxury that we can't afford when our education is at the bottom level in the US, our public health problems have not been seriously addressed, and so many people are in the danger of loosing their homes on the wake of sky-high taxes, insurance premiums and mortgages.

One of the main issues that worry them are the retirement pensions of this new-formed social class. These pensions are steadily guzzling their budgets and there are starting to feel the fear of loosing these benefits that are negated to many Floridians.

I will always affirm workers' right to secure their retirement. I will never negate the importance of good police and fire departments. But everything must be done within the reasonable and the possible.

That is the reason why we should address the problem in its deep root. Uncontrolled spending must be stopped and rolled back. Efficiency must be the rule and not the exception. And our local government, as well as our State government must abide by the same belt-tightening measures that they have forced onto a majority of our population.

One of the first steps, in my modest opinion, is the regrouping of city services, and the undoing of this hundred-head bureaucracy that we don't need.

The exercise of swapping and juggling with tax revenues is proving to be a vain purpose. We have to modify our Tax Property system to make it more equitable; encouraging first time buyers, investors and out-of-state buyers, instead of chasing them away. This won't be accomplished without reducing our government expenses to acceptable levels.

We definitely need a reform. We do not need a temporary patch. A big part of Florida's future depends on what is done now. All parties should agree on this basic fact and work to reach a real solution.

Please visit my website: http://www.condo-southflorida.com

One more Florida Property Tax reform proposal!

December 15, 2007

The last addition is pending review from the Taxation and Budget Reform Commission. It would repeal most of school property taxes, replacing them with the inclusion in the state sales tax of SERVICES that are mostly exempt at the present time.

In 1987, the taxation of services lasted for only a few months and was repealed by the Florida legislature under strong opposition by business interests.

The proposal was sponsored by Commissioner John McKay, a former Florida Senator. It came immediately under attack by business interests who claim that it would mainly affect small business and cause the losses of thousands of jobs. They claim that very few states levy taxes on services; service business could be easily transferred to neighboring states. The Coalition for to Protect Florida's Economy (which is said to represent more than 200,000 employers) is strongly opposing the proposition.

The proposal would allegedly cut total property taxes by about 40% and has received some approval by different groups who claim that it would be of great relief for businesses who now pay a disproportionate share of property taxes.

It would apparently target areas that are now exempt, such as legal fees, accounting, printing, transportation, automobile repairs, while retaining the non-taxation of food, medicine, electricity and some essential services.

This new proposal is aimed at correcting the shortcomings of the now legislature- approved tax reform that will go on the ballot on January 2008, which do not provide major relief to owners of non-homestead properties, as well as business and investment properties owners.

My opinion: Reduce taxes, reduce taxes, reduce taxes. Not by swapping creativity, not by increasing one tax to reduce the next one, not by ignoring the main issue. Which is: Reduce expenses, reduce expenses, reduce expenses.

Our bubbling bureaucracy, our absurd multiplication of services, our unreachable goals of pensions and benefits for the ever-increasing class of public employees is the real issue and the real problem to be solved.

Our teachers are the lowest paid in the US, but the most of the proposals to reduce property taxes will further compromise schools budget.

However, we still have a ridiculous amount of small cities with their own water departments, fire departments, mayors, commissioners, parties, cultural departments, and so forth. And the prospect of pension plans for this whole new class is an ominous threat on our future.

Is this an economical way to spend our money? Citizens' consensus is NO.

Magic cannot be performed without real reforms. Our public service expenses have not created a better school system (Florida has one of the worst in the whole country), has not improved citizens' quality of life. It has just gobbled the billions of dollars of property over-taxing and will not give up a penny without a bitter fight.

Is anybody going to put together a proposal that addresses the real causes of the problem, not its consequences?

In Aventura, the new Peninsula II is a paragon of luxury, featuring a two-story health club overlooking the bay, a spectacular two-story lobby opening to the waterfront, tennis courts, and jogging paths. Also, all residence will have floor-to-ceiling glass walls alowing for panoramic views of the intracoastal and the Atlantic Ocean.


Peninsula II is located next to Williams Island, directly in the heart of Aventura, Florida. The affluent area of Aventura has some of the best shopping, restaurants and an exciting nightlife in all of South Florida. The location of the area enables quick access to many nearby desirable destinations; Bal Harbour, Ft. Lauderdale, and South Beach to name just a few. The Penisula II is also conveniently located within 20 minutes of Ft.lauderdale and Miami International Airports.

GENERAL FEATURES

2 Luxury Condominium towers overlooking a marina, the intracoastal waterway
Manned Gatehouse
Heated swimming pool and spa
Barbecue/ bar area in a garden setting
Sunrise terrace with shade pavilion
Recreation room
Fitness center with state-of-the-art exercise equipment, steam room and sauna.
Sunning decks with pool furniture and umbrellas
Tennis courts

BUILDING FEATURES

Private allocated storage facility
Valet parking services
Tinted glass for energy efficiency
Exterior doors and windows that meet or exceed
South florida hurricane standards

RESIDENCE FEATURES

Decorator ready unit
High ceilings throughout
Double entry door
Marina or Water views in all residences
Security, emergency medical call and fire alarm systems with 24-hour on-call monitoring and entry door protection
Pre-wired for television, cable tv and telephone designed for High-speed data transmission
Expansive open-air terraces with glass panel railings
Fire protection sprinkler systems
Sliding doors and glass balconies offering grand views of the intracoastal waterway
Individually controlled high-efficiency air conditioning and heating systems with digital thermostat
Laundry room with top of the line washer/dryer and storage

KITCHENS
Imported cabinetry
Granite kitchen countertops
Under-mount double stainless steel sink with single lever faucet fixtures and disposals
Stainless steel appliance package

For more details, please go to: Peninsula II


Please visit my website: http://www.condo-southflorida.com where you browse through hundreds of condo buildings, find free search tools, area information about South Florida and much more.

A new proposal could go before voters in November 2008, sponsored by an umbrella group formed by several organizations which were developing different plans, but are uniting their efforts.
In essence, the plan proposes a general cap of 1.35% on the taxable value of any real estate property, as its yearly property tax.
This coalition must be able to collect around 611,000 voters’signatures by the end of January 2008
The tax cap would also apply to commercial properties and non-homestead homes such as those owned by ‘snowbirds’. It would preserve the ‘Save our Homes’ provision to cap at 3% per year any increase in the assessment of homestead homes, as well as the present homestead exemption.
I tend to like it, even though it might lack somehow to address all issues:

- It does not address the ‘portability’ of ‘Save our Homes’, which means that homeowners could carry these benefits when they upgrade our downgrade for their present home. This is becoming a key factor in reviving the real estate market.

- Since it is still linked to the actual value of a home, there is no protection if we should face again a violent raise in property value, as was the case during the “boom” period of 2000-2005. It limits the abilities of local government to raise millage percentages by limiting property tax to 1.35% of taxable value. This is a very effective short-term solution, but would fail to protect us if another ‘boom’ period raises the assessed value of our homes above inflation levels. A provision that future assessments increases should not exceed the official inflation rate could address this issue and avoid eventual spiraling “assessed values”. That would again put as in the sad situation our real estate market is living today.

However, the proposal would be a great step in the right direction.

Here is the text of the proposal:

Ballot Summary
Ballot Title: 1.35% property tax cap, unless voter approved

Provides that the total property tax on any parcel of real property shall never exceed 1.35% of the highest taxable value of the property. This property tax limit shall apply to all property taxes except property taxes approved by voters. Distribution of revenue from parcels that have reached the 1.35% limit shall be determined by general law. Does not amend Save Our Homes, the Homestead Exemption, or any other exemption.
Full Text of the Proposed Amendment

Article VII, Section 9 of the State Constitution is amended by adding a new Paragraph (c) to read:

ARTICLE VII FINANCE AND TAXATION
SECTION 9. Local taxes.
(c) Notwithstanding any other provision contained in this Constitution, the maximum amount of all ad valorem taxes collected by counties, school districts, municipalities, and special districts on any parcel of real property shall not, when combined, exceed 1.35% of the parcel’s highest taxable value. The term “taxable value” refers to the value of real property to which millage rates are applied. The Legislature shall, by general law, provide for the distribution of tax revenues derived from parcels for which the combined ad valorem tax levies exceed 1.35% of the parcel’s highest taxable value. This subsection does not apply to ad valorem taxes levied for the payment of bonds issued pursuant to Section 12 of this Article or levied for periods not longer than two years when authorized by a vote of the electors.


The proposal can be reviewed at www.cutpropertytaxesnow.com

Please visit our website: http://www.condo-southflorida.com
and enjoy a wealth of information and search tools for all inquiries about
Florida Real Estate.

One of the finest buildings in South Florida, Bella Mare at 6000 Williams Island is
one of the most coveted luxury properties in Aventura.
You should visit the Bella Mare just for the experience.

The last addition at Williams Island is a stunningly modern, functional and architecturally rich project, that overlooks Biscayne Bay and adds a new dimension to Aventura luxury living.


Built in 2006, 215 units on thirty floors, with living areas between 1,316 and 4,840 square feet, and one to five bedrooms.

Breathtaking views, spacious floor plans, full services and recreation. All units have east and west views, and no hallways. Private elevator to each unit's foyer.
Bella Mare spoil its residents with more amenities that they could ever use. They include:

Marina
Tennis
Pool
Spa
Fitness Center
Club House
Billiard
Library
Security
Business Center
Restaurant
Front Desk
Playground
Storage
Property Management
Laundry Room
and much more.

Aventura has become one of the most famous destinations in South Florida, with easy access to beaches, word-class shopping at the Aventura Mall, beautiful parks, excellent public and private schools.
Conveniently close to both Miami and Fort Lauderdale airports, with many houses of worship, restaurants, clubs, the new casino, the Gulfstream racetrack and a short drive to the shopping and entertainment at Bal Harbour and Hollywood.

Visit our website: www.condo-southflorida.com
A stunning display of Florida Homes and Florida Condos for your enjoyment.

By day, Brickell is the pulse of Miami's International business community, housing the city's most prestigious banks and financial institutions. By night, it transforms into a bay front oasis, boasting Miami's most elegant condominium residences.

The so called Brickell area extends south of the Miami River to SE 26th Road (the Rickenbacker Causeway).

Sometimes mentioned as Millionaires Row, the southern portion of Brickell Avenue, (US-1)is home to the Miami Financial District as well as the site of new high rise luxury condominium developments that constantly redefines the Miami skyline.

On the East side is Brickell Key. Brickell is divided into two sections: Upper Brickell and Lower Brickell.

Upper Brickell is the area north of Southeast 15th Street (Broadway) including the financial district, and is technically part of Downtown Miami. It has a mixed use of both office and residential buildings. The financial district, which is sometimes called the Manhattan of Miami, has the largest concentration of international banks in the US.

Lower Brickell which extends between Broadway and Southeast 26th Road, is mainly residential and includes the Millionaires Row.

Jade at Brickell is one of the most appreciated buildings on Brickell.

Located at 1331 Brickell Bay Drive, it has stunning amenities, great views on the Bay, luxury throughout.
Some of the amenities:

Beautiful pool
Sauna/Spa
Outstanding Fitness Center
Club House
Library
Bar
Ample storage facilities
Business Center
Security
Playground

Technological advances are always present in Jade lifestyle.


With the ease of a touch-screen monitor, they provide: entertainment, information, convenience, and security, as well as wireless internet, simultaneous hi-tech audio and video entertainment throughout the residences. Security and fire-prevention systems are computer-monitored around-the-clock, not to mention a full service business center with all of the latest software and communication systems.

Residences luxury features:

State-of-the-art kitchen complete with Italian designer cabinetry, stainless steel appliances, wine cooler and cappuccino maker. Marble throughout bathrooms and vanities.



When looking to buy or rent a Condo at Brickell Avenue, please check our CONDO SEARCH where you can review all listings in most Brickell Condominium buildings.

If you are looking for a condo or home in the Brickell area, we at www.condo-southflorida.com can assist you and help you find the home, vacation home or investment property, that you are searching for. Our great experience in South Florida Real Estate and our friendly attention will make all the difference

Who says that there is no affordable housing in South Florida?

Aqua Isles, a luxury gated waterfront community of exceptional privacy and elegant design. Located in Dania Beach, this new luxury townhome community features distinctive Spanish Revival-style architecture, waterfront views, and direct ocean access. Aqua Isles offers a sophisticated lifestyle with manicured landscaping, gated courtyards, and recreational amenities.



Dania Beach is located between Hollywood and Fort Lauderdale. Dania Beach homes and condos are highly appreciated by homebuyers, due to the proximity to Fort Lauderdale Airport, and the fact that most location are no more than 10 or 15 minutes drive from the Beach. Next to Hollywood Beach and Hollywood Circle with all their entertainments venues, Dania Beach is famous for its many antiques stores alongside US-1.

Aqua Isles marina-inspired community also features ocean access via the Intracoastal waterway with a limited number of private boat slips available for purchase.

Residents of Aqua Isles enjoy the tranquility and serenity of a private gated community, which features a majestic entry feature that invites them into a world all their own. Here, residents can enjoy the pleasures of their own private swimming pool and cabana, plus passive parks, a tot lot and wonderful water views.

Pricing:

Alessandria: 1,141 Sq. Ft; 2 bedrooms, 2 1/2 baths, private courtyard, $199,990
Brescia:1,429 Sq. Ft.; 2 bedroom, 2 1/2 baths, private courtyard, $224,990
Cannes: 1,429 Sq. Ft; 3 bedrooms/den, 3 baths, private courtyard, $ 232,900
Delano: 1,489 Sq. Ft, 3 bedrms 2 1/2 bath, family room, balcony, private courtyard, $235,990
Europa: 1,436 Sq.Ft, 3 bedrms 2 1/2 bath, family room, balcony, private courtyard, Corner Unit, $235,990
Ferrara: 1,666 Sq. Ft., 3 bedroom 2 ½ baths, Family Room, Private Courtyard. $249,990



Amenities:

Ocean access. (Limited number of boat docks available).
Impressive entrance features with guard house
Electronic gated entrance.
Interlocking brick paver sidewalks
Sparkling swimming pool and cabana
Passive parks
Architecturally-designed lush tropical landscaping in common areas
Decorative street lighting for security
Ornate entrance gate
Tot lot

Homes Features:

Sturdy lifetime concrete exterior walls on first and second story.
Steel reinforced cinder block construction on first and second story.
Architecturally-selected white aluminum window frames with light tinted glass for energy efficiency.
Tempered safety 8’ high sliding glass doors.
Architecturally-accented front entry door.
Central air conditioning and heating distribution system.
Dramatic ceiling heights on first and second floor living areas.
Monocottura ceramic tile flooring in the kitchen, bathrooms and powder room, in your choice of designer colors.

If you are looking for a Aventura Condo, a Sunny Isles Condo or any other South Florida Real Estate property, please visit our website www.condo-southflorida.com
where you will find a wealth of information and updated MLS data at your disposal.

Florida Condominiums for Sale

Sunny Isles Beach Condos


Searching for Florida condominiums for sale? Is your choice a luxury building on the beach, or at walking distance to the sand? Do you like to wake up in the morning to glance on the wonderful blue water of the Atlantic Ocean, through your floor-to-ceiling windows, while you are sipping on your orange juice and biting on your croissant?

If your budget allows, then you can be a candidate to purchase an ocean front Sunny Isles Condo. On Collins Avenue, you will definitely find this ultra-luxury building, with endless amenities, tennis, racquetballs, pools, saunas, fitness centers, you name it.
Starting in Golden Beach, look at the Ocean Condos. They are some of the most appreciated buildings, built gradually since 2000.

Right across the street, the Oceanview Condos and Ocean Reserve condo conversion present you with more affordable alternatives, albeit lacking the direct ocean views and being only refurbished buildings from the 70’s.

Continue your walk South, and if you would still like to consider more affordable condos in Sunny Isles, what about the Kind David Condos, a 2005 building, with good amenities and well appointed apartments, just across the street from the beach.

You could also consider the Porto Bellagio Condos, (2003) around 171st Street, also on the opposite side from the beach.
What about the Golden Bay condos (1999)? They are a good value.

The Sole Condos are also a good alternative, right on the beach.
Also on the sand, the Sands Point built in 1996 is a great option.

I wouldn’t discard the Ocean Point Condos (2000) right between 173rd and 174th Street and Collins. They are a good compromise on luxury and location.

Let us talk now about some of the best condos in Sunny Isles, although not the newest.
I refer to the Pinnacle Condos with its peculiar shape, a great architectural landmark in Sunny Isles Beach. Great luxury has not been spared, marbles, Italian kitchen cabinets and bathrooms vanities, wonderful views through its floor to ceiling windows.
It is a 1998 building, but one of my favorites.

The Millenium Condos, built just in 1999 have some wonderful units with a frontal ocean view. It is also a high end building.

Le Meridien Condo Hotel, also known as M-Resorts, is a beautiful place, no doubt, if you like this modality.
Trump has built a few places in Sunny Isles. Let’s look at the Trump Palace Condos. Just completed, Trump luxury at its best.
Next to it, is the Trump Sonesta is a condo hotel with very upscale amenities.

La Perla Condos at 166th Street is on the sand. A 2006 building, some of the condos have good water views.

The Sayan Condos have just been delivered in 2007. At the 163rd. Street, they are a good value for your money if you are looking to walk on the beach without crossing the street.
Let me mention Oceania series of building. Located in the south end of Sunny Isles, the first three Oceanias, Oceania 1, Oceania 2 and Oceania 3, are located on the beach.

Oceania 4 and 5 are on the Oceania Island, across from Collins and the Beach.
They were built in the early 90’s. They could be a good midway between the most expensive Sunny Isles Beach condos and the budget condos built in the 70’s.

Talking of these older buildings, we have the Arlen House Condos on Bayview Drive, a couple of minutes walk from the ocean. Then I would like to mention the Winston Towers, a series of large structures on 174th Street, some of them with great views on the Intracoastal, docks and marina make it a good value if you can’t afford the newer condos.
They are conveniently priced and a good option for somebody who doesn’t mind walking 5 minutes to the Beach.

The Plaza of the Americas is another complex in the same kind.
You can also consider the Poinciana Island townhomes, across the street from the water. They have small 25 foot docks and you can have your own boat in your backyard.
And the Marina Bay Condos, a 12 floors structure, built not later than 2002 is also an intermediate solution.

By the way, I was just forgetting one of the most beautiful (and expensive) places in Sunny Isles. The famous Acqualina, a landmark. The Acqualina condos are some of the most expensive properties in Sunny Isles and the outside of the building is surely a statement.

Did I forget something? Of course, there are a few new developments, the Solis, a top-luxury place, the Jade Ocean, the St. Tropez on 163 Street, across the street from the water, and so many more are either on the drawing board or being completed.
Check my website: www.condo-southflorida.com and take a look.

I didn’t cover everything. But perhaps I gave you a good idea. Good luck in your search of a condo on the beach at Sunny Isles.



If you are interested in Sunny Isles Beach Condos or any South Florida Condo, please visit my website: http://www.condo-southflorida.com

Reflections about Florida Property Taxes as of November 4th 2007

I just learned that eleven citizen’s initiatives regarding Property Taxes have been registered so far with Florida Division of Elections. They all need to get 611,000 signatures to be placed on the ballot, and would have to be approved by 60% of the voters.
They range from:

- requiring voters to approve any local government initiative to increase their tax revenue by more than 3 percent, to
- Limit property taxes to 1.25% of any property assessed value (after homestead exemption)
- Replace property taxes with new revenues to be determined by the Legislature and transfer funding counties, schools and cities funding to the state government.
- Rollback revenue collections to the 2004-2005 fiscal year, adjusting it to the change in population and consumer price index.
And so forth.

The “Ax-the-Tax organization, which sponsored some of these initiatives, has influenced our tax laws over the past 20 years by helping to defeat 14 tax increase initiatives in Florida and other states, one of t hem Broward County’s attempt to increase its sales tax.

However, gathering these signatures means big money and strong political leadership and that will be their main challenge.

What does this mean? Floridians are not happy with the recent legislature initiative.

The provisions to be placed on January 2008 ballot evidently fall short of what Floridians had been asking for. Everybody agrees that the present tax system is flawed. It will be difficult to really fix it without major changes in the whole economical structure of our local and state governments.

The bottom line is there has been a very large windfall in counties and cities revenues from rising property values and the resistance to give it up is the main reason why we did not get a tax reform that would satisfy Floridian homeowners, snowbirds, investors and commercial properties owners.

Some facts to analyze are:

In 2001, the total of property tax levied statewide was about 16.6 billion

In 2006 it increased to 30.4 billion. Almost 85% hike in 5 years. The large increases have been in larger cities and municipalities.

During the same period, the state budget grew to 71.5 from 47 billion. The bulk of this revenue is produced by Florida sales tax, and document stamps from real estate sales.

During this same period, Florida’s population has not doubled and inflation index has not been by any mean disproportionate. In fact, what is happening these days is a reduction of part-time residents, many of them just waiting to sell their homes to go elsewhere.

It is evident that our government has extended too much during the last 5 years. And they have found their way to spend all the extra revenue. One of the factors is the public-sector employees and their geometrically growing retirement pensions that are not ultimately sustainable.

The local government excesses, the ridiculous amount of cities with their mayors, commissioners, fire departments, police departments, cultural departments, celebrations, city halls, and what more, has naturally managed to spend the extra money and they now threaten us to cut down on fire and police departments if we make any intent to control this nonsense.

The new tax reform proposal extends the privileges of the long-time homestead homeowners by allowing them to “transport” when they move to a new home.
Almost every body else has got a very limited relief. The new home buyers, the landlords, the business owners have been almost completely ignored. While the “save our homes” provision should be maintained as an instrument to avoid abusive budget spending by our governments, any meaningful property tax reform must address the necessities of all property owners.


Henry B. Nathan is a Real Estate agent in South Florida.
Please visit my website; www.condo-southflorida.com
with information about all Florida Condos and Florida Homes,
Aventura Condos, Sunny Isles Condos, Miami Beach Condos,
Hollywood Beach Condos.

Please visit our website and find out about:

Florida Condos Miami Beach Condos
Hollywood Beach Condos

Florida Property Tax Reform to go on ballot January 29

Voters will have to approve by a 60% majority votes the property tax reform approved by the House and Senate, Monday October 29.

The trimmed down package will reduce the average homeowner tax by an estimated $220 per year. By increasing the homestead exemption to $ 50,000, (excluding school taxes – which brings it at only about $40,000), this will hardly jump start the stalled real estate market, but it is the only choice homeowners will have next January. Take it or leave it. So, we’ll take the $ 220. We were promised that taxes would drop “like a rock”. Let’s see.

A positive provision is the portability of the “save our homes” protection, albeit also truncated to a maximum of $ 500,000. It will allow some people to move out of their homes, to upgrade or downgrade. That will possibly be a factor on the market.

The losers:
- Non- homesteaded owners, which will hardly see any difference.
- New home buyers, who will have to live with the $ 220 savings.
- Commercial properties owners who got nothing, but a small tax cut.

Consolation prize: 10% yearly cap on assessments increase for non-homesteaded properties, up from the previously 5% approved by the house. Should we add that it’s sounds like a ridiculous provision.

Anyway, they kept their promise.
Property Tax will drop.

Like a pebble.



For Sunny Isles Condos and Miami Condos, please visit my website: www.condo-southflorida.com

Donald Trump place Fort Lauderdale project on hold.

BY DOUGLAS HANKS - Miami Herald

Condo-hotel projects once were so hot in South Florida that Donald Trump planned two in Fort Lauderdale. Now he’s back down to one amid cooling enthusiasm for the novel real estate product behind much of South Florida’s recent hotel boom.

The celebrity developer expressed confidence in the Trump International Hotel and Tower under construction on the northern end of Fort Lauderdale Beach. But his partners are worried enough about condominium sales, he said, that they’ve suspended plans for the Trump Las Olas Resort to the south.

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”They want to wait until the market comes back. And I agree with them,” Trump said. “At this moment, to build in this market would be foolish.”

Other developers are putting the brakes on condo-hotel projects, too. Smith Travel Research says the 7,629 condo-hotel units under development in Miami-Dade County this summer represents a 28 percent drop from a year ago.

Ugo Colombo and his partners scrapped plans to sell off rooms as condo-hotel units at the Cipriani in Miami Beach, saying they’d rather run the former Saxony hotel as a traditional resort with a separate tower of residential condos.

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Jorge Perez’s Related Group froze sales of condo-hotel units at its Viceroy South Beach and condo-hotel units at its Viceroy Miami projects as executives decide whether to keep the units as standard hotel rooms.

”We’re kind of weighing the market right now,” said Bill Thompson, head of the Viceroy project on Miami Beach.

While the depressed housing market clearly plays a dominant role in the condo-hotel pullback, the hybrid real estate product — unit owners can rent out their condos to hotel guests — faces other challenges now being magnified by the housing slump.

National hotel chains have tempered their enthusiasm for condo-hotels, refusing to lend their brands to projects unless developers pledge to leave a large chunk of rooms unsold. With hotels charging record room rates, lenders and others see the lodging sector a better bet than condominium real estate.

And with the first generation of new condo-hotel projects up and running, some developers are facing buyers disappointed by their units’ monthly returns. Two recent lawsuits against projects in Marathon and Las Vegas accuse developers of securities fraud for touting condo-hotels as lucrative investments that ended up yielding weak returns.

Edgardo Defortuna, the Miami developer planning a Mandarin resort at the site of Fort Lauderdale’s Ireland’s Inn, said the strategy remains selling condo-hotels there. But that could change.

”It does today make a lot more sense to at least consider the possibility of doing a straight hotel,” said Defortuna, president of Fortune International Realty. “Certainly the market has changed, and it’s a lot more favorable toward regular hotels.”

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A soaring real estate market helped scramble buyers’ expectations, since many condo-hotel units sold at prices largely divorced from what vacationers would pay to stay there, said Gregory Rumpel, a broker with Jones Lang Lasalle Hotels.

He noted the ”old adage” that developers should assume $1 in rental revenue for every $1,000 they spend building a hotel room. So a room that cost $300,000 to build should rent for about $300 a night. But some condo-hotel units in South Florida sold for $600,000 or $800,000 — meaning they should rent for as much as $800 a night.

”We just don’t get that kind of rates here,” Rumpel said. “New York maybe. Not here.”

Condo-hotel sales helped bring a number of premier lodging brands to South Florida, from the new St. Regis in Fort Lauderdale to Miami’s Four Seasons. Only Las Vegas and Orlando have more condo-hotel units under development than Miami-Dade does, according to Smith Travel.

And while Broward ranks as the nation’s 36th largest lodging market, it finishes sixth in terms of condo-hotel activity, with nearly 2,800 units under development.

Rumpel and others see the condo-hotel product enduring the current real estate downturn, but with a shift from real estate speculators to those more interested in owning vacation homes than turning a profit by renting out hotel rooms.

”For an occasional user, there is no better buy than a condo-hotel,” said Dante Alexander, president of the National Association of Condo-Hotel Owners. Along with generating more rental income than typical vacation condo, “the beauty is somebody else takes care of it for you.”

For sure, developers continue selling the concept here and in other resort destinations. Stanley Levine and partners hope to sell 17 units at their new Browns Hotel and Marina in Bimini, Bahamas. The Mondrian on South Beach reports strong sales for its West Avenue location.

And with 70 percent of the units sold at the Trump International Hotel in Fort Lauderdale, the real estate mogul whose name adorns about a dozen condo-hotel projects around the world predicts a bright future for the product — particularly in popular vacation spots like South Florida.

”You get income pretty easily, because the hotel market down there has been pretty good,” he said. “I find people really like it.”
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In the news this week:



A Judge has annulled January, 2008 referendum vote on Property Tax Reform.

A lawsuit, personally filed by Weston's mayor, Eric Hersh, and a court ruling all but killed the property tax reform project. The issue is that the proposed ballot language is flawed and confusing. At the same time, the ruling upheld Florida legislature's right to limit local governments' spending.

A simple fix would be to clarify the ballot summary. Make it transparent that whoever chooses the 'supersized' exemption would be dropping his right to the 'Save Our Homes' benefits and, perhaps, on the long run, suffer the effects of an uneducated vote, in exchange for short term relief.

Hersh suggests a possible intent to deceive voters on such an important issue, and that it could have long term effects on homeowners' pockets.

Fixing the ballot language shouldn't be a difficult task but legislators apparently prefer to take the matter to appeal court, where their odds of loosing are very high. That would avoid them the embarrassment of voters' rejection. Rumors are that this is a possible outcome since recent polls showed voters' approval dropping below 50%, while 60% is the minimum needed to pass the tax reform.

One evident blunder in the ballot summary is the promise of a minimum homestead exemption of $ 50,000 for all homeowners. This wouldn't be true for homeowners who opt to stay with their 'save our homes' exemption and their present $ 25,000 homestead exemption, dropping the new $ 50,000 'supersized' exemption.

Another evident flaw is that the ballot summary does not make it at all clear that the reform would eliminate the 'Save Our Homes' protection for whoever takes the bait and opts for the immediate 'supersized' tax relief. Additionally, it fails to clearly mention that the final objective is to definitely phase out 'Save Our Homes': the ultimate salvation of many Florida residents. Save Our Homes was instituted in 1992 and essentially keeps a cap of 3% maximum increase of the assessed value of full time residents homes.

'Save our Homes' is apparently a thorn in the side of our government. Removing it seems to be the main agenda of this tax ballot. Once phased out, our cities will very easily find their way to routinely raise their taxes according to their growing needs without any limit.

What better evidence than the steps that some cities are taking to bypass the tax rollbacks recently mandated by the legislators. Apparently, they have done it either by having it voted off by a large majority of their commissioners or through the not-so-subtle recourse of lowering the taxes on one hand and on the other hand increase their fees for many services or charging for services that were previously free.

The 'save our homes' 3% limit has been in fact a reasonable and fair way to keep tax increases within what has been the inflation index during the last 15 years.

However, while 'Save Our Homes' has protected residents from the government's taxmen, it has established a two-tier system that puts a much heavier burden on new buyers, rental properties owners, vacation home buyers, real estate investors and commercial property owners.



Suggestions?

- Keep the 'save our homes'exemption at its present status for homestead homeowners.

- Keep the supersized homestead exemption as it was structured in the failed proposal, i.e. 75% on the first $ 200,000 of assessed value, then 15% on the next $300,000. However, this supersized exemption would not be applicable to the present 'save our homes'beneficiaries who have bought their present home before 2001 (they have already been protected from the wild home value increases during the recent 'boom').

- Extend this protection to all residential properties, vacation homes, rental properties, and commercial real estate by putting a cap on assessed value increases indexed on US inflation.

- Allow the 'portability' of their'save our homes'benefits to homeowners who are presently enjoying this protection. They are presently 'trapped'and unable to downsize after retirement age.

Of course, these reforms would not solve the immediate troubles of vacation homeowners and investors who have seen their tax bills balloon during the last 4 or 5 years. May we suggest a temporary rollback or reduction of their taxable values in 10% during the next 2 or 3 years.

Not a perfect solution, but it would give us all at least some confidence in the future.

If the 3% 'save hour homes' cap had been applied to all types of properties, regardless of their homestead status, perhaps our cities and counties would have found some restraint in their uncontrollable appetite and their growing bureaucracies and budgets; The huge increase of their 'tax base'produced by the mushrooming development should have been more than sufficient. However the automatic 'bonanza' brought over by the wildly rising property values was not compensated by a reduction of the tax rate. The new money just found its way in the local governments' budgets.

The present system is not really based on the government's needs or the citizens ability to pay. It is based on the local government's authority to tax us as much as they can. The 'save our homes' protection is the only exception.

My last suggestion: Frugality. If we all want to keep our taxes low, we have to mandate our local governments a prudent and thrifty approach. Citizens must also be prepared to limit the extent of the services received, as well as require cutbacks in unnecessary bureaucracy and duplicated services.

It is evident that the property tax system needs an overhaul. A rushed and uninformed referendum, with hidden implications and unaddressed issues, is not the solution. We are sure that this is not the way our legislature prefer and that their message will not be: 'that's all we are giving you, taking or leave it'.

Not all hopes are lost. Weston's mayor has mentioned that there are other means to put a new and better proposal on January's ballot. Florida Taxation and Budget Reform Commission could eventually place tax amendment proposals directly on the ballot.

Let's hope that something will be done in time.



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Please visit my website, condo-southflorida.com where you will find the most amazing tools for your Florida home or Florida investment property search. Please visit our Website and use our multiple search tools to find an Aventura Condo, or a Hollywood Beach home, or all type of South Florida Properties.