I recently read this article in the Sun Sentinel, reproduced from the Associated Press - Apparently, what started as an effort to relieve distressed homeowners, will end up being another tax break for big business.

Sadly, what initiated the whole thing, which is alleviate homeowners plagued by high-interest mortgages, was quickly forgotten or dismissed in the process.

HOMEOWNERS SHUT OUT

Measure offers no foreclosure aid

By ANDREW TAYLOR | The Associated Press

April 11, 2008

WASHINGTON - The Foreclosure Prevention Act passed by the Senate on Thursday doesn't deserve the title. Just ask its author.

The measure is a bipartisan package of tax breaks and other steps designed to help businesses and homeowners weather the housing crisis, but it has nothing to offer people who can't afford their mortgages or owe more on their homes than they're worth.

"Quite candidly, what we've done does not quite live up to the title," said Sen. Chris Dodd, D-Conn., chairman of the Senate Banking Committee and the measure's top sponsor. "We have more work to do. We do not do enough in preventing more Foreclosures in the country."

The bill passed by an impressive 84-12 vote, but even supporters such as Dodd acknowledge it's tilted too much in favor of businesses such as home builders.

The plan combines large tax breaks for homebuilders and a $7,000 tax credit for people who buy foreclosed properties, as well as $4 billion in grants for communities to buy and fix up abandoned homes.

The measure will be significantly redrawn by House critics who say it favors business over borrowers.

Democrats failed to win approval of ideas such as giving people threatened with losing their homes the right to seek more favorable loan terms from their lenders in bankruptcy courts. At the same time, a proposal to have the government back up refinanced loans for people facing Foreclosure has yet to win GOP support.

The White House opposes the plan but has not issued an explicit veto threat. It says parts of the legislation would make the problem worse by depressing some home values, and that the measure inappropriately uses taxpayer money to bail out lenders saddled with foreclosed houses.

The House is likely to reject key portions of the Senate measure, including $25 billion over three years in tax breaks for money-losing businesses such as home builders. A plan adopted Wednesday by a key House panel dropped that idea as well as the tax credit for purchasers of foreclosed homes.

Rep. Barney Frank, D-Mass., the Financial Services Committee Chairman, said the tax credit was "like paying a dog to eat a bone," and called the business tax break "a mistake."

Senate Majority Leader Harry Reid, D-Nev., acknowledged that changes will be needed in upcoming talks with the House and the White House.

"This is just the beginning of the process," Reid said. "This bill will go to the House. With the House and the White House we can come up with a piece of legislation fairly quickly."

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

HERON POND

Pembroke Pines Condo Conversion

Heron Pond offers 1, 2 and 3 bedroom units that combine top of the line features with an appealing decor. Kitchens are equipped with dishwashers, garbage disposals, energy efficient refrigerator, washer and dryer.

Linen closets and additional storage space are provided. Private balconies, patios or sunrooms and large bay or floor to ceiling windows are available.

The Amenities are outstanding:

Clubhouse,

Two lakefront resort style swimming pools

Exclusive sundecks and spas

Fitness center, aerobics, sauna and steam rooms

Picnic areas with barbeque grills

Playground

Lush landscaping and fountains.

Location:

Convenient access to Florida Turnpike and I-75.

Close to Pembroke Mall, Broward Mall.

Close to Pembroke Lakes Golf & Racquet Club, Buehler Planetarium, ProPlayer Stadium.

Numerous grade A schools.

Easy access to higher education at Nova Southeastern University and Broward Community College .

All units will be delivered fully upgraded with new kitchens, bathrooms, appliances, floorings. Please ask about the details.

The property is FHA approved and the developers will contribute to down payment assistance, closing costs, and will pay the first 6 months of the HOA fees (maintenance fees). That would allow a potential buyer to purchase with very little money down.

Pricing:

1/1 from $ 139,900 2/2 from $ 189,900

How many times do I hear the same questions? How long it's going to take? What is my forecast on Florida real estate?

I deal every day with different types of buyers: the investor, the vacation home buyer, the first-time home buyer, the luxury home buyer, the curious, you name it.

They will all have different approaches. For example:

Ideally, the investor would like to rent and cover totally or a significant part of his monthly mortgage costs, his insurance, maintenance or condo fees, and his taxes.

The vacation home buyer wants to keep his monthly payments under control, because by definition he is looking to have fun with his purchase, and not to create himself a new source of headaches. He adds the mortgage payments, the condo fees (because they are usually interested by condos), and the property taxes. And he will compare that to renting a good hotel room or suite for a couple of weeks or even a month.

The "empty nesters", which are in retirement age, and trying to downgrade to a smaller place, once their kids are gone, are a special case. They have been helped by the "portability" feature now added to their 'save our homes' protection. Typically they will pay less property tax if they move. However, many of them have lived in homes where they can somehow control their maintenance expenses. Moving to a condominium building means monthly charges as a lump sum, plus eventual "assessments" charges for repairs or upgrades to their condo building. These "condo fees" have sustained a relentless inflation during the last decade.

The first- time home buyer makes his calculations and unless he and/or his wife hold really great jobs, they could quickly find out that, after paying the mortgage, the insurance or condo fees, the property taxes, a purchase is simply out of the question. Renting is a much better deal.

Let's play with some figures.

You graduated five years ago from a good college; you hold a decent job. You are married, with a child, and your spouse is employed and brings some money to the table. Between both, you are making around $ 5,500 a month and that means that, after tax, you net about $4,600.

You have grown in a middle class family and are used to a certain level of comfort. But you have made your mind and your first home is just going to be a crowded two-bedroom condo. What's available in a decent neighborhood, (and I am not talking great luxury or new buildings on the beach) will cost you around $ 280,000. You were lucky enough to land a mortgage loan with only 3% down, and your savings allowed you to pay all the closing costs, and that's fine.

When you calculate your total home related monthly payments, you reach a figure of $ 2,500 per month. That doesn't include your electricity, phone, cellulars, and other utilities. Let's calculate all these in about $220. You won't have TV cable or internet at home. You can't afford it and after all, TV is not good for the kid, and you have enough internet exposure at work.

On the other hand, even though you have a health insurance plan, subsidized by your employer, you might have to fork out your part of about $250 or $300 a month. From time to time, you must pay a $10 charge to see a doctor, or something called "deductible", and even these expensive medicines for your kid's sore-throat infections; but we won't count that.

You also need two cars, because you both work, and these cars need insurance, tires, and other goodies. You have been reasonable, nothing fancy, but you still have to pay the monthly installments on both. So let's say that this would mean an additional $ 600 or $700 for both cars, all included. - except, of course, the gas. I was about to forget that! And at three dollar +, even for two small cars, it will mean another $150? $200? Ok. Say it's only $ 150. And you will change the oil and do minor mechanics yourself, and run on flat tires, not to overwhelm the budget. By the way, we forgot the college loans that, after all these years, you settled up to pay at about $200 a month.

We're already passing the $ 4,000 mark and we're just starting the month. You haven't eaten any food, you haven't bought any clothes or shoes; you haven't thought about vacations, restaurants, movies, continuing education, children birthday parties, or anything that can bring a little fun to your life, you haven't bought any furniture, gadget, nothing…And you haven't even put aside a penny.

While watching the shaky image of your antenna-powered TV, your spouse is ironing your shirt and the dress that you will wear at work tomorrow , trying to ignore the screams of the dear child who has spent all day in your mom's house –you can't afford private pre-school- and while cooking dinner, you are thinking that it's already the 20^th of the month and in 10 days you will get a new batch of bills and invoices in the mail.

Should you have thought twice before buying this condo, instead of renting for around $1000 or 1200? You bet.

Now, how many young couples I know, are making more money than our friend? How many do you know who have a lower income?

The fact is that real estate is not only an investment. It's not a share bought in the stock market. It's not an IRA account, an annuity or a bond. It happens to be an essential part of the day by day life of our population. And, during the so called real estate boom years, there has been a greedy, unreasonable and unbearable raise in home prices which has not at all been matched by salary raises or income increases.

Remember before the last stock market crash in the year 2000, how new technology companies which had never earned a penny, saw their shares selling at incredibly high prices? The madness went on until eventually everything went back to normal and people went back to common sense. (or did they?). Can we compare that to what's happening with real estate? Why not?

Isn't it what we are seeing now? With the difference that so many homeowners who bought at high prices are stuck with high mortgages and can't even sell their little piece of heaven?

And the other half who refinanced and cashed out for a few years to maintain their lifestyle, only to found themselves with a negative equity?

Our local governments, our cities and counties have aggravated the problem by unrestricted spending, and while they affirm that they are seeking ways of easing the property tax burden without affecting anybody (which is of course impossible), home insurance premiums have skyrocketed, and no big relief is in the horizon, no change. Except for home prices. Because hardly anybody can buy them any more. Now you ask me when these prices are going to go up again; when people will start buying homes again, when we will be back to normal. Do you think I can perform magic?

Now let's take the vacation home case. There was a time when Florida was a place you bought a nice condo for sixty or a hundred thousand dollars. You paid some maintenance fees and taxes at a total of around two or three hundred dollars a month and you were all set. Today, you buy a two fifty or three hundred thousand little condo, you're stuck with assessments and condo fees of five hundred a month, then the taxman comes and it's another five thousand dollar bill to pay, and it just doesn't make so much sense. You will just look somewhere else or just forget about the idea.

Last but not least, our investor studied the case of the $200,000 dollar condo he was looking at, and pondered if the thousand dollars a month he would gross in the best case, if all things ran smooth and he had a great tenant, would be a suitable return when he must pay $1800 per month between mortgage, maintenance, taxes and assessments.

Pessimistic? I wouldn't be doing this real estate job if I didn't have some hope. Now if our legislators could mandate some hope in the people who buy, it would definitely help.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

New Condo Conversion in Miami - Affordable Housing.

Oversized one and two bedroom condos from $ 109,000 to $ 190,000

The Ellington

Treat yourself with what a great lifestyle. Open the door to one of the residences and you’ll be astonished by the airy and spacious interiors that characterize The Ellington. With different floor plans to choose from, you can have not only what you need, but exactly what you want.

Oversized units with huge master bedrooms, closets, and sweeping views are just the beginning. The Ellington is also home to a state of the art gym, Olympic style pool, children’s playground, tennis courts, and an enjoyable barbecue area.

In the center of the vibrant city life and between both Broward and Miami-Dade, offers amazing shopping venues, and proximity to major highways and beaches.

Near Dade/Broward County Line

Community Features:

Clubhouse
State-of-the-Art Fitness Center
Olympic Style Pool
Spacious Sundeck
24 hr Secured Gated Community

Storage
Covered Parking Garage
Lighted Tennis Courts
BBQ & Gazebo Area
Business Center
Sauna

Interior Features:

1 & 2 Bedroom Oversized Floorplans
Split Floor Plans
Oversized Closet
Screened Terraces
Large eat-in Kitchen
Water Views
Upgrade Package Available

Ask me about this great new development:

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Daily Real Estate News | National Association of Realtors - March 27, 2008

10 Fastest Growing U.S. Cities

The fast-growing areas in the United States are in the Sunbelt, with Texas leading the way, according to data released today by the U.S. Census Bureau.

Dallas-Fort Worth added more than 162,000 residents between July 2006 and July 2007, more than any other metro area. Three other Texas cities — Houston, Austin, and San Antonio — also were in the top 10.

Experts credit much of the growth in the South to strong local economies and housing prices that are among the most affordable in the United States.

A report earlier this month by Global Insight found that housing prices in the Dallas area were undervalued by as much as 30 percent.

Other areas experiencing growth included the New Orleans area, which is recovering from Hurricane Katrina and grew by 4 percent or nearly 40,000 people. During the same survey last year, the population of New Orleans dropped by nearly 290,000 people.

Meanwhile, Detroit lost more than three times as many people as any other metro area — its population declined more than 27,300. Other areas losing more than 5,000 people were Pittsburgh, Cleveland, Columbus, Ga., Youngstown, Ohio, and Buffalo, N.Y.

The 10 biggest gainers:

1. Dallas-Fort Worth-Arlington, Texas: 162,250
2. Atlanta-Sandy Springs-Marietta, Ga.: 151,063
3. Phoenix-Mesa-Scottsdale, Ariz.: 132,513
4. Houston-Sugar Land-Baytown, Texas: 120,544
5. Riverside-San Bernardino-Ontario, Calif.: 86,660
6. Charlotte-Gastonia-Concord, N.C.-S.C.: 66,724
7. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.: 66,231
8. Austin-Round Rock, Texas: 65,880
9. Las Vegas-Paradise, Nev.: 59,165
10. San Antonio, Texas: 53,925

The 10 fast-growing metro areas

1. Palm Coast, Fla.: 7.2 percent
2. St. George, Utah: 5.1 percent
3. Raleigh-Cary, N.C.: 4.7 percent
4. Gainesville, Ga.: 4.5 percent
5. Austin-Round Rock, Texas: 4.3 percent
6. Myrtle Beach-Conway-N.C.-Myrtle Beach, S.C.: 4.2 percent
7. Charlotte-Gastonia-Concord, N.C.-S.C.: 4.2 percent
8. New Orleans-Metairie-Kenner, La.: 4 percent
9. Grand Junction, Colo.: 3.7 percent
10. Clarksville, Tenn.-Ky.: 3.7 percent

Source: The Associated Press, Paul J. Weber (03/27/08)

European (and Cyprus) property markets.

Since December 2007, the Euro currency has reached some record highs against the US Dollar and the Pound Sterling and inevitably the European property market, including Cyprus, has been affected. On December 19 2007, the GBP was worth almost Euro 1.40. Three months later, it has gone down to Euro 1.28. This is a real reduction of 9.4%, which means simply that property within the Euro zone countries has become 9.4% more expensive for the British buyer, all other factors being equal.

However, selling a property in Cyprus now and sending the funds back to the UK as sterling would have resulted in the opposite, you would have gained 9.4% in extra profit. The savvy investors who bought in Cyprus have another reason to be happy with their investment. Other reasons to invest in Cyprus, it is easy and all monies can be repatriated. The Euro could be overtaking the dollar as the world’s major currency and become stronger in the future.

The Cyprus market has felt the impact of weak sterling because Britons are still by far the number one buyers on the island. However, in March the Royal Institute of Chartered Surveyors produced their 2007 European Housing Review, which reported an almost universal downturn in European housing markets - except for Cyprus where it has actually accelerated. (Source of proof)

Why is this? In part, thanks to the country's adoption of the Euro at the beginning of this year, which has increased investor confidence. In addition, developers across the island, along with private vendors, have recognized that to survive in such a market, they must cut costs, reduce profits & make prices more affordable.

Did they have a choice? Not really, most realised that this was the only way the market could survive, by stabilising and weathering the economic storm, so that it can emerge stronger in the future. According to research by www.bestcyprusproperties.com, which compared prices in Autumn 2007 with current prices, it's easy to see that this had the desired effect. Prices have become stable and in some cases have decreased. As a result, the Cyprus Property Market is more realistic to the foreign investor, leaving room for growth & capital appreciation in the future. Cyprus property continues to be a good investment and a real possibility for people who long to relocate for a different lifestyle.

The fact that English is widely spoken and understood, driving is on the left side of the road coupled with low personal taxation are just some of the reason why one should really explore the benefits of purchasing a property either as an investment or as a home in Cyprus.




Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

The multiple lawsuits filed by buyers unwilling to complete their pre-construction contracts with developers is a notorious aspect of the ongoing real estate state-wide problems.

This article was in today's Miami Herald:

The Related Group ordered to make condo refunds

The New York attorney general directed The Related Group to cancel
contracts and return deposits to some buyers solicited in the Empire
State.

Posted on Wed, Mar. 26, 2008
BY PATRICK DANNER

New York's attorney general's office has asked Miami developer The
Related Group to cancel contracts and return money to New Yorkers who
bought condo units in two of its South Florida projects.

The Related Group broke New York state law by failing to register
units at Miami's 50 Biscayne and Bal Harbour's Harbour House before
marketing them to buyers in New York, the attorney general's office
found.

Related appears prepared to fight the finding, however.

''We categorically expect [the attorney general] to conclude that we
have not violated New York state'' law, said Betsy L. McCoy, Related's
general counsel, in an e-mailed statement. The company is
investigating the issue, and providing documents as required, the
statement said.

The letter from the New York attorney general's office didn't spell
out what would happen if Related doesn't fulfill its request.

It's unlikely the New York decision will have any impact on residents
of Florida or other states who bought condos in South Florida and who
are now trying to get out of those deals.

There could, however, be fallout for other developers in South Florida
who pitched their projects to prospective purchasers in New York but
failed to register through offering statements with the state.

''This decision could potentially impact New York purchasers of South
Florida condominiums well beyond these two projects,'' said Eric
Neuman, a Boca Raton lawyer who represents preconstruction condo
purchasers in lawsuits against developers.

Miami lawyer Robert Cooper, who represents about three dozen buyers in
New York and New Jersey who have sued Related over contracts at 50
Biscayne and Harbour House, expects the attorney general's decision
will further worsen problems in the Miami condo market.

''It means more units on the market and will add downward price
pressure in an already bad market,'' Cooper said. People ``looking to
sell are going to get hurt worse.''

Related didn't disclose how many units in the two projects were sold
to New Yorkers, but Cooper estimated it's between 5 percent and 10
percent. He said his clients put down deposits ranging from $100,000
to $250,000 at Harbour House and $60,000 to $100,000 at 50 Biscayne.

Cooper said his clients were elated with response of the attorney
general's office.

''They fully expect The Related Group will comply with the New York
attorney general's request that they receive their deposits back,'' he
said.

Condominiums -- regardless of where they are located -- that are
marketed in New York are considered real estate securities that must
be registered with the attorney general's office.

The purpose of the law is to ensure developers provide all disclosures
so prospective purchasers can make an informed decision, said Richard
Epstein, a Fort Lauderdale lawyer who represents condo developers.

In two letters dated March 19, Lewis Polishook, chief enforcement
officer for New York's real estate finance bureau, part of the
attorney general's office, informed Related the state has received
numerous complaints from buyers in 50 Biscayne and Harbour House.

''Making a public offering without submitting an offering plan and
having that plan accepted for filing is unlawful,'' Polishook wrote to
Related. ``Please allow the [buyers] to rescind and return all monies
they have paid to you.''

Polishook didn't return calls and a spokesman for New York Attorney
General Andrew Cuomo declined to comment.


Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Daily Real Estate News | March 25, 2008 - National Association of Realtors

Democrat Candidates Offer Housing Fixes

Democratic presidential candidates Monday shared new positions on home foreclosures.

Hilary Clinton supported legislation proposed by Democrats Rep. Barney Frank of Massachusetts and Senator Chris Dodd of Connecticut that would "expand the government's capacity to stand behind mortgages that are reworked on affordable terms."

But she said a bipartisan group should determine whether that approach was sufficient or whether the U.S. government should step in as a temporary purchaser.

Barack Obama, who had previously called for a similar approach, warned against having it weighted toward financial interests. Obama has been more conservative in calling for government help for the housing crisis and has criticized Clinton’s call to freeze interest rates on adjustable-rate mortgages.

Here’s where both candidates stand on the issue:

Hillary Clinton proposals

• Freeze foreclosures for 90 days;
• Freeze interest-rate resets on subprime mortgages for five years;
• Create a $30 billion fund for states and cities to purchase foreclosed properties;
• Expand the Mortgage Revenue Bond Program by $10 billion;
• Allow the Federal Housing Administration to guarantee more mortgages;
• Temporarily hold “underwater” mortgages on the government’s balance sheet;
• Protect mortgage originators against lawsuits for restructuring loan terms.

Barack Obama Proposals

• Simply the tax code to allow more families to claim a mortgage income tax credit;
• Allow the FHA to guarantee more mortgages;
• Enact stiffer penalties against predatory lending;
• Cut taxes on middle-class households;
• Expand the Mortgage Revenue Bond Program by $10 billion.

Source: Reuters News, Jeff Mason and The Wall Street Journal, Amy Chozick and Nick Timiraos (03/24/08)

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Transcription of an interesting article from the Sun Sentinel

Beware the fine print on latest property tax proposal

The Sun Sentinel - By: Michael Mayo - March 23, 2008

By now, you've probably heard about the proposed constitutional amendment to swap state-mandated school property tax with a penny sales tax increase and a repeal of certain sales-tax exemptions.

Sounds palatable, especially for those who bought houses in recent years and whose property tax bills could drop about 25 percent.

But before you go rushing off to vote for the plan, hatched and approved at lightning speed last week by the Taxation and Budget Reform Commission, consider the parts you probably haven't heard about:

- School districts would still be able to collect property taxes for construction, renovations, repair, debt repayment and other expenses. Local schools could still collect up to $5 for every $1,000 in taxable value.

- Part of our tax savings would end up going to the federal government. Property tax is deductible on federal income returns, but the deduction for state sales tax has expired. Lower property taxes would mean a smaller deduction and a higher income tax bill for those who itemize.

- The proposed amendment would put a 5 percent cap on the annual assessment increase for non-homesteaded properties. That would be good news for businesses, landlords and snowbirds. But the new cap, which comes close to the 3 percent Save Our Homes cap for homesteaded properties, could mean higher property taxes for everyone.

Here's how a March 11 commission staff analysis of the plan put it: "The cap on the annual growth of assessments of non-homestead properties may reduce local government revenues and/or lead to an increase in millage (property tax) rates on all properties."

That doesn't sound good.

Neither does this, also from the staff analysis: ' This measure will shift funding for a substantial portion of the public education system to state revenue sources. This measure will likely reduce state government spending on services and items other than education due to possible budget reductions.'

In other words, this proposal might be another shell game.

It would need 60 percent voter approval in November to pass. As with the January property tax amendment, which increased the homestead exemption and allowed full-time residents to transfer tax breaks when they move, local governments can subvert the intent by raising tax rates.

This plan guarantees an annual $9.3 billion to local school districts, same as under the current system. But there's fuzzy math as to whether a sales tax increase and revamped exemptions would be enough to reach the figure. If there's resistance to a services tax (on things such as lawyers and barbers), there could be a big shortfall.

That would mean cuts to other parts of the state budget, which could mean local governments would pick up the slack by increasing their portion of property tax bills.
Here's a real-life example of how a tax bill (mine) might look if this amendment passes. My 2007 property tax bill was $2,936. The state-mandated school portion was $657.

The new plan would drop my bill to $2,279, including $387 in school district taxes that would remain. But the district could conceivably raise that to $680. And my property tax savings could be negated by increases in sales tax and income tax.

House Speaker Marco Rubio likes the plan, because it spreads the tax burden away from property owners.

"Up to 20 percent of sales tax revenue comes from tourists," he told me Friday.

But this year's state budget shortfall shows the volatile and unpredictable nature of sales tax revenue, which is overly susceptible to downturns in the economy and tourism.

Rubio said that in down years, government would have to spend less. Florida already ranks near the bottom of per-student spending nationally.

The sales-tax exemption revamp is a long overdue idea, but given the sketchy guidelines and power of lobbyists you wonder if the Legislature has the will to carry it through.

Michael Mayo can be reached at mmayo@sun-sentinel.com

--------------------------------------------------------------------------------------------------------------

On the same note, my comments:

Of all the valuable information that has been above transcribed, my conclusion, is one more time, that you don't get richer or accomplish any savings by swapping money from one pocket to another.

The new tax reform proposed by the Taxation and Budget Reform Commission is one more attempt to do exactly that. At the end of the day, as it has usually been the sad reality, the burden of the charges will fall on the back of the people who can afford it the least.

We cannot reduce our schools budget. We should not reduce our existing social programs to assist low income, seniors, handicapped and sick citizens.

Our local governments have provoked the malaise of our property tax inflation. They are the only ones who can solve it. They have to trim their budgets to the point where we, the inhabitants of these cities and counties, can afford to pay for these budgets.

If we cannot afford to have magnificent city halls crowded with myriads of bureaucrats, and non-essential services, let's get rid of them. If we have too many overlapping services, police departments, water departments, cities zoning departments, firefighter services, let's consolidate them, merge them, or any other solution that makes them more efficient.

No city and no county should have the privilege of increasing their budgets more than the official rate of inflation, unless expressly authorized by the majority of voters.

That's the bottom line. And these are the principles that we have been taught to apply in our household budgets. You can't spend more than what you earn, because sooner or later you will be in trouble.

Reducing the assessments value of our homes can be easily circumvented by our local governments, increasing their millage rates. Reducing property taxes by increasing sales taxes could possibly overburden those who can least afford it – those who can't afford to buy a home.

Keeping things the way they are will continue the trend that is hurting Florida's economy. Discourage out-of-town buyers and investors, accelerating the present trend of our working population to migrate to other states, lower our middle-class living standards.

Why not deal with the reality and do what has to be done? Our local governments have experienced an unusual bonanza by multiplying construction and developments. Those hundreds of new towers and high rises has widened their tax base and should suffice to meet all their needs. Why insist on taxing us on inflated and unrealistic property values? A real rollback to a sound economy is the only answer.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

The Taxation and Budget Reform Commission has approved a proposed amendment on March 17, 2008. It would go on the November 2008 ballot.

Basically, it would reduce property taxes by 25% in 2011, eliminating the $9.6 billion that school districts must collect in order to qualify for state aid. This reduction would benefit resident and non resident owners as well.

The loss of revenue would be substituted by a 1 percent additional sales tax and/or levying sales tax on products and services that are not presently taxed, as well as a package of spending cuts.

Raising 1% the present sales tax would yield a maximum of $ 3.9 billion. How will a new sales taxes on some services be implemented, has not been determined. However the proposal excludes levying a sales tax on the presently exempted food, medicine, health care and electricity. The general opinion is that new taxes on services such as legal and real estate work, dry cleaning, pet care, and similar, would probably have to apply.

Against the proposition is the Associated Industries of Florida, a business lobbying group.

Since the proposal mandates keeping school funding at the current levels, lawmakers would have no choice except to trim the state budget to offset the loss of property tax revenue.

Some of the possible targets:

- Reducing state-covered health coverage to thousands of low-income children and pregnant women

- Eliminating a Medicaid program for 125,000 seniors and disabled residents, or reducing nursing home and hospital payments,

- Axing the state's medically-needed program which helps thousands of transplant and gravely ill patients.

Of course this has raised serious objections. The general opinion is that a heavier sales tax disproportionately hits the poor.

Now let's analyze this remedy as opposed to previous attempts.

Everybody seems to have forgotten the general sentiment that cities and counties, which have been unduly favored by the unusual raise in property values, as well as thousands of new homes built since 2000, should adjust their budgets. Nobody is mentioning raising this anymore. We just try to reduce the property tax burden by reducing state services to the needy, and hitting the common citizen with heavier sales taxes. That is the bottom line.

Do I agree with the new proposal? As a realtor, I should be happy, since it might somehow reignite the business by attracting out of state real estate buyers and investors, due to lower property taxes. As a citizen, I might have an issue.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

This is the text of a letter that I emailed to Florida senators Martinez and Nelson, and Representative Wasserman-Schultz, at the suggestion of the National Association of Realtors.

The issue is that the increased loan limits for FHA that were included in the Economic Stimulus package are set to expire at the end of the year. NAR supports an FHA Reform Bill that includes realistic and permanent increases in the loan limits.

Subject: Permanent Loan Limit Increase Key to FHA Reform Bill

As a constituent and a REALTOR®, I want to stress how important it is for FHA reform legislation to be quickly enacted. These bills, passed the House and Senate in 2007, are now stalled in conference. Permanent increases in the FHA loan limits, lowered FHA downpayment requirements, and new opportunities for condominium purchases are needed to create safe and affordable mortgage options for our state's homebuyers and those wishing to refinance. These changes will also provide much needed stability to our local housing markets and economies.

The new loan limits passed in the recently enacted Economic Stimulus bill will expire in less than 10 months. Dramatically reducing these limits at year's end will push our nation's fragile housing markets into turmoil once again. Realistic loan limits that permanently help ALL areas of the country are needed to bring stability to the marketplace.

FHA's down payment levels led many borrowers to opt for the exotic, risky mortgages that have been the hallmark of the foreclosure crisis. The FHA reform bills will allow FHA to modify down payment requirements and offer flexible financing to eligible borrowers.

In many areas of the country, condominiums remain the most affordable option for homeownership, but FHA owner/occupancy and documentation requirements, make it very difficult to purchase a condominium using FHA mortgage insurance. The FHA reform bills will move condominium financing programs into FHA's single-family program where they belong and ease the way for condominium purchases.

We cannot wait any further for FHA reform. Pass a permanent FHA reform bill NOW to give American homebuyers and homeowners the peace of mind they so desperately need.

Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos.

Good News about Florida Tourism.

According to the latest information, we are almost at the same pre 9/11 levels. With all the problems that Florida's economy is facing, the year 2007 has been a high point for both Broward and Dade tourism activity.

3% gain in overnight visitors, a good increase in international tourism, five and a half million in Dade only; this important source of revenue for South Florida continues to grow: Twelve million total overnight visitors in Dade, 10.7 million in Broward.

Hotels have seen their revenue soar in 2007, compared to a rather weak 2006. Hurricane season has been benign since 2005 and that has helped.

A surge of summer overseas travelers can be credited with much of the increase. That will be the future of tourism growth here. The US dollar weakness is the number one factor.

Canadians are increasingly flocking to South Florida in the winter, as are European planning to do in the summer season. International arrivals at Fort Lauderdale International airport were up 20% in 2007.

The hassles and tougher requirements for tourist visas, have been mentioned as a negative factor that keeps hurting this industry. It is claimed to reduce tourist affluence by at least 10%.

Florida continues to be an important magnet of world travelers, and we can only forecast a continuous and steady growth.

Its influence on the real estate business is obvious. During the last twenty years, we have immensely improved our appeal to world tourism and we keep offering the best in entertainment, beaches, outdoor activities, shopping, nightlife and, of course, lots of sunshine.

There are many destinations for Florida visitors: South Beach, Aventura, and Dade County as well as Fort Lauderdale, Palm Beach County, and the whole South Florida area, down to the Florida Keys. Orlando and its surroundings, the East Coast, Naples, Tampa, Sarasota, and the West Coast, Panama City, and the Panhandle, they all have their special flavor and the immense variety of alternatives offered is what makes our state so special.

Diving in the Atlantic Ocean, or at a deep cavern in a North Florida spring, canoeing in pristine rivers, deep sea fishing for marlin and sail fish, camping and exploring our state forests, partying on Ocean Drive or Lincoln Road in South Beach, watching a sunset in Key West, boating on the Intracoastal Waterways, spending an afternoon at a football or basketball game, or the Florida Grand Opera, horse races, casinos, or just enjoying the balmy weather, and our amazing blend of ethnicities, Florida is worth a visit, definitely.

I am a Florida Realtor.

For your search of Florida Condos, Miami Beach Condos, Aventura Condos, please call me at (954) 296-6741

How can the "Save-Our-Home" exemption hurt you?

You are so happy to be one of the privileged Florida taxpayers protected by the SOH (Save-Our-Homes) amendment.

You bought your home 25 years ago and while its value has tripled over the years, you have only seen an increase of about 50% in your tax bill.

We know that in 1992 Florida voters approved the S.O.H. amendment to the Florida constitution that limited the amount of value a homestead property could increase for tax calculation's purposes. The law limits assessment increases to 3% percent or the increase of the Consumer price Index - whichever is less.

During the last 5 years or so, while home values skyrocketed, you could only be touched by a maximum of 3% property tax increase.

Meanwhile new people buying in the neighborhood where paying three times as much as you, since their tax calculation was made on the value of the home at the time of the purchase.

Owners of vacation homes, or investment properties, which were not protected by SOH, were also hit by very high raises in their taxes.

Is this fair? No it's not, but the SOH is at least protecting part of property owners from the free spending habits of cities and counties, that is at the root of the problem.

Recent decisions of Florida legislature have tried to give a small break to homeowners by rolling back some tax increases. The erosion of home values during the last two years also lowered the assessed values of most properties. Owners of homes not protected by SOH could see at least some reprieve since cities and counties base their taxes on the assessed values. An increase of the homestead exemption gave homeowners the hope for another tax break. Or did it?

It was effectively a small break for some property owners paying high taxes.

In your case, your home also decreased in value during the last two years. However your next tax bills will still show a yearly 3% increase, as allowed by SOH.

Theoretically, if home values keep going down, or just stabilize during the next decade, you will gradually be eating up on the SOH benefits, at the rate of 3% per year, until they are completely neutralized.

Is this fair? Not exactly. How will this affect new buyers of homes, who will "transport" their S.O.H. tax advantage with them? It will take me some time to figure it out.

Is it a loophole in the "save-our-homes" provisions? Some legislators have ample knowledge of the issue. They affirmed that they will address it in the next Legislature session.

Meanwhile, it is just a curious twist on our already bizarre property tax system.

If you don't understand all the above, don't worry, just call me; we will figure it out together.

Henry B. Nathan is a Florida Realtor. Please visit my website www.condo-southflorida.com

to search for Aventura Condos, Miami Condos, Sunny Isles Condos, Hollywood Condos

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