FYI…taxes in FL are going up 33% on Jan 2007. SO your tax bill on a 450K condo will be closer to 12K a yr…We have some high taxes here and can really kill cashflow numbers on rentals and makes 2nd homes expensive for maintance…
As for tampa…prices never did get really high there in the condo market so I do not see much of a adjustment there…I would still stay clear of any new condo projects unless completed and still check comps good…many are overpriced…
This has been a topic of conversation for sometime now at my office which is in Western FL, (St. Petersburg). In addition to being a mortgage office, the owners of the company also own a Homevestors franchise, and completed a 60 unit ground up development recently (basically all presold fortunately).
We think that it will pick back up soon, but probably not until 1st or 2nd quarter, we are guessing, next year.
But, we are not bullish on the general US economy. And believe that there my be some potential economic dark clouds on the horizon.
We think that we are going to be in another Refi boom come 1 to 1.5 yrs from now because interest rates are going to drop significantly… We think that this may spark another rush to real estate, and raise prices with flowing cheap money.
For the time being, I think that you are in a great market to buy right now, and that prices should flatten over the next few months as number of property listings for sale eases slightly.
The market this past summer was night and day from last year, as I’m sure you saw.
If you are interested in any mortgage help, feel free to email me… We also have a number of good investor properties as well… (I mean 2nd 2nd home props ;))
Best and Worst States: Based on data from the 2002 census, the following five states have the lowest local property taxes per capita/year. They are Arkansas ($191), Alabama ($285), Kentucky ($376), New Mexico ($380), and Oklahoma ($425). The states with the highest local property taxes per capita/year are: New Jersey ($1,871), Connecticut ($1,733), New York ($1,402), and Rhode Island ($1,369).
Now the NY thing is funny being a ex-NY’er. Property taxes are actually cheap in the city but when you goto Long Island it jumps up like crazy. I am also sure upstate NY is low on taxes.
Florida is raising property taxes to 3% of the sale from 2% to help fund the state backed insurance company Citizens for the next 10yrs instead of having them pass the entire loss to the other insurance companies which will then pass it on to everyone. Only good thing about Florida is the Save our Home plac (I think thats the name) it keeps your property taxes from raising more than 3% per yr on your primary residence. So of your taxes are 3000K in 2006, then in 2007 your tax bill will not be more than 3090. But once you move your screwed, but some people are working on having this apply to homeowners looking to move to another house in the same county. So far it has not made it thru legislation but will be great for people looking to downgrade really.
I know TX is high, about 5% of sale price, but they say its suppose to go down in about 2yrs…But you have to remember, no INCOME TAX in both states…
I’m with you about NYC taxes… they are cheap according to the value. The tax rates in NYC are based upon assessed values, which are ridiculously low. It wasn’t uncommon to have a 30 unit apt bulding with $10K/yr in taxes…
It should be said though, that they have a number of tax programs for property which can keep taxes down according to building upgrades (J-51 program). Not to mention, the density means that there is much less infrastructure sq. ft per property to manage.
I thought that FL real estate was cheap until I moved down here. The cost of property is comparable (IMO) to up North when you factor in sq. footage bldg/lot differences.
It’s a shame if they raise taxes this way for new homes here in FL, it will hurt resale… but guess they have to get their money from somewhere…
Taxes have gotten out of control Assessed value means nothing anymore on a property when calucating taxes. Just do 2% of the sale price since the next tax yr it will jump. I bought one condo i rent, when i got it in 2005 the taxes were $1100, then in 2006 it jumped to $6000, talk about killing your cashflow figures especially when i had to increase the rent by about 15% to help cover the tax increase.
Only thing that is great is the longer you live in your house, the lower your taxes will be since you taxes on a primary home can not increase by more than 3% a yr which is basically adjusted for cost of living. At least the state did something right 20yrs ago when they put that into play. Now if someone can step up and fix taxes now. Of course its on the agenda for our governors running for office, but they just say that to win votes…When i see it happen i will believe it…