Hi everyone. I wanted to thank all of you that helped pass Amendment 1, the real estate tax portability amendment. If you are unfamiliar with the amendment, please read my previous two posts with some written examples as well as a brief video overview.
The amendment is far from solving all the issues we have with the huge real estate tax problem in Florida. The main thing though is that it is a start and definitely can save many many people thousands of dollars each year. To see how the new amendment affects you, please click on the link below.
New Tax Portability Calculator
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Thursday, January 31, 2008
Tuesday, January 29, 2008
Home Price Drop Hits a New Record Low
There was an interesting story on CNN's internet site that I thought that most of you would be interested in. The unedited story is below.
January 29 2008: 10:19 AM EST
NEW YORK (CNNMoney.com)
The housing market is only getting worse, according to the latest report from S&P Case/Shiller released Tuesday.
Home prices were down 8.4 percent in November compared with last year in its 10-city index, a record low. The 20-city index also fell 7.7 percent.
The Case/Shiller report compares same-home sale prices. The industry considers it to be one of the most accurate snapshots of housing prices.
Previously, the largest year-over-year decline on record was 6.3 percent in April 1991. The November report marked the 11th consecutive month of negative returns for the index, and twenty-four months of decelerating returns.
Cities In Trouble
"We reached another grim milestone in the housing market in November," said Robert Shiller, Chief Economist at MacroMarkets LLC and co-creator the index in a statement.
"Not only did the 10-city composite index post another record low in its annual growth rate, but 13 of the 20 metro areas, each with data back to 1991, did the same."
The worst hit market of the 20 metro areas covered was Miami, where the median home fell a whopping 15.1 percent in value. San Diego prices also fell steeply, down 13.4 percent. Las Vegas was off 13.2 percent and Detroit by 13 percent.
Three cities did emerge with higher prices compared with 12 months ago: Prices rose 2.9 percent in Charlotte, N.C., 1.8 percent in Seattle and 1.3 percent in Portland, Ore. But even these markets have turned down over the last three months. Indeed, every city in the index recorded at least three consecutive months of falling prices through November.
The three biggest U.S. cities also recorded year-over-year declines; New York was down 4.8 percent, Los Angeles 11.9 percent and Chicago 3.9 percent. The losses in Los Angeles accelerated in November; that city recorded the largest month-over-month drop of any index city, 3.6 percent.
Tuesday's report came in the wake of many other surveys indicating that the housing market is getting worse. Foreclosure filings and the risks of future foreclosures were both up sharply; the number of new homes sold plunged more steeply than any year on record; and the pace of existing home sales fell to their lowest level in 27 years.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
January 29 2008: 10:19 AM EST
NEW YORK (CNNMoney.com)
The housing market is only getting worse, according to the latest report from S&P Case/Shiller released Tuesday.
Home prices were down 8.4 percent in November compared with last year in its 10-city index, a record low. The 20-city index also fell 7.7 percent.
The Case/Shiller report compares same-home sale prices. The industry considers it to be one of the most accurate snapshots of housing prices.
Previously, the largest year-over-year decline on record was 6.3 percent in April 1991. The November report marked the 11th consecutive month of negative returns for the index, and twenty-four months of decelerating returns.
Cities In Trouble
"We reached another grim milestone in the housing market in November," said Robert Shiller, Chief Economist at MacroMarkets LLC and co-creator the index in a statement.
"Not only did the 10-city composite index post another record low in its annual growth rate, but 13 of the 20 metro areas, each with data back to 1991, did the same."
The worst hit market of the 20 metro areas covered was Miami, where the median home fell a whopping 15.1 percent in value. San Diego prices also fell steeply, down 13.4 percent. Las Vegas was off 13.2 percent and Detroit by 13 percent.
Three cities did emerge with higher prices compared with 12 months ago: Prices rose 2.9 percent in Charlotte, N.C., 1.8 percent in Seattle and 1.3 percent in Portland, Ore. But even these markets have turned down over the last three months. Indeed, every city in the index recorded at least three consecutive months of falling prices through November.
The three biggest U.S. cities also recorded year-over-year declines; New York was down 4.8 percent, Los Angeles 11.9 percent and Chicago 3.9 percent. The losses in Los Angeles accelerated in November; that city recorded the largest month-over-month drop of any index city, 3.6 percent.
Tuesday's report came in the wake of many other surveys indicating that the housing market is getting worse. Foreclosure filings and the risks of future foreclosures were both up sharply; the number of new homes sold plunged more steeply than any year on record; and the pace of existing home sales fell to their lowest level in 27 years.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Tuesday, January 22, 2008
Real Estate Tax Cut Amendment Video Explanation
Below is a link to a video with an explanation on the real estate tax cut amendment, Amendment 1, that people will have a chance to vote on, Tuesday, January 29th. If you would like a more detailed explanation in writing, please view my previous blog, Property Tax Cut Amendment.
https://www.cbflorida.com/public/Video/VoteYesOn1.wmv
I hope the two blogs answers all the questions you may have had on this somewhat confusing amendment.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
https://www.cbflorida.com/public/Video/VoteYesOn1.wmv
I hope the two blogs answers all the questions you may have had on this somewhat confusing amendment.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Tuesday, January 15, 2008
How to Prepare Your Home for Sale
Things you can do to ensure your home's exterior lands favorable first impressions:
- Stay on top of your lawn mowing and maintenance and tidy up your front landscaping.
- Plop a new, colorful welcome mat in front of the door.
- Embellish your door area with a nice, big potted plant to the side of the front door.
- Slap a fresh coat of paint on your door.
- Move all the toys, bicycles, and scooters away from the front of the house.
- Clean all your windows until they're sparkling.
- Invest in a new doorknob and lock - this will jazz up your door and provide greater security.
- Make sure your street numerals are polished and in place. Or, invest in a nice new set that stands out among your neighbors' standard numerals.
- Place a seasonal wreath or arrangement on your door.
- Repair any loose shingles - the last thing a potential buyer wants to worry about is the roof.
- Paint and repair your gutters.
Once the exterior wows your potential buyers, you'll need to continue to make an impact on them when they make their way inside. You can almost think of it as preparing for a formal dinner party. For starters, you can:
- Remove all the clutter - make sure kitchen and bathroom countertops are as clear as possible, try to keep toys organized in closets and shelves, temporarily remove any excess knickknacks or family photos if you tend to have a lot.
- Hang fresh clean towels in the bathrooms.
- Touch up your paint if your walls have a few rough spots. You probably already have the extra paint sitting in your garage.
- Vacuum your floor each morning. You may also want to think about getting your carpets clean before potential buyers view your house.
- Make sure all your faucets are drip-free.
- Replace any nonfunctioning bulbs in your light fixtures and vanities.
- Thoroughly clean all your appliances, including the inside of your oven and microwave.
- Place a beautiful centerpiece in the center of your dining room table.
- Eliminate odors as much as possible - place potpourri in the bathrooms, use air freshener and deodorizer, especially if you have indoor pets or there's a smoker in the house.
- Let the light in - open all your blinds and curtains. If your house's natural light leaves some rooms dark during certain portions of the day, turn on the lights if you know your house may be shown that day. If you have any decorative or track lighting, be sure it is on.
- If you have too much furniture, place some of it in storage.
- Add some final touches, a couple of fresh bouquets of flowers and some nice potted plants in decorative containers can do wonders.
Basically, just use common sense. Remember that everyone has his or her own style. You're not trying to impress with your particular brand of décor. Rather, you're trying to present a simple, clean, attractive home that exudes potential - an empty, yet enticing, palette for your home's next owners.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Tuesday, January 08, 2008
Property Tax Cut Ammendment
I’m not sure if you are going to vote on the 29th of this month or not, but a lot of people have asked me about the benefits of the real estate amendment. If you are interested in this information, please read the explanation below.
What are the Basic Facts on Amendment 1?
Passage of this amendment is critical to the future of Florida and it will put money back into the hands of most Florida property owners.
1) The property tax cut plan on the January 29 ballot would save taxpayers nearly $10 billion over five years.
2) Floridians have the power to cut property taxes by voting 'Yes on 1' on January 29, 2008.
3) Property taxes have doubled in the past six years, outpacing the average growth of homeowner’s salary.
4) Local governments have used their increase in revenues to greatly expand their budgets and reserves, instead of returning it to Florida’s families and small businesses.
What are the key benefits of Amendment 1?
Where Can I Get More Information on Amendment 1?
For more information about Amendment 1, visit: www.YesOn1Florida.com.
How Will Floridians Gain Property Tax Relief?
With the passage of Amendment 1, citizens will gain the freedom to purchase a new home without huge tax penalties, and rental home owners, second home owners and businesses will benefit by limited future tax increases. The amendment contains two provisions: doubling the homestead exemption and portability of the Save Our Homes tax benefit.
1) Double the homestead exemption for almost all homeowners, providing an average savings of about $240 annually. The new exemption applies fully to homesteads valued over $75,000 and partially for homesteads valued over $50,000. This new exemption does not apply to school taxes.
2) Allow portability: The Governor has heard from many constituents that they feel trapped in their homes. Portability will allow homeowners to transfer their Save Our Homes tax benefits from their old home to a newly purchased home. Portability applies to homes purchased in 2007 and later, and the benefit is capped at $500,000.
How Does Portability Help People Who Want to Move?
Amendment 1 benefits those who want to move into a different home, seniors seeking to downsize, and business owners facing rising property values.
Looking for a larger house?
If you bought a house for $95,000 in 1995 and its current market value now is $300,000 and the assessed value is only $150,000-- you could transfer the full $150,000 difference to buy a more expensive home.
If the purchase of your new home costs $400,000, you would be paying about $6,300 in taxes without portability. But with the tax savings from Amendment 1 including the Save our Homes portability and the double homestead exemption, the new annual taxes would be about half or $3,600.
Want to downsize?
Under the new tax plan, portability also will apply if you want to move to a less expensive property. Instead of transferring the difference, your transfer will be your existing Save our Home percentage.
For example, if you live in a $300,000 house with an assessed value of $150,000, you pay taxes on $125,000 or about $2,100. If you wanted to move to a $200,000 condo the savings will be significant.
In this case, you would bring 50% or $100,000 in savings that reduces your assessed value to $100,000 on the new property. With the newly increased $50,000 homestead exemption from Amendment 1, the taxable value for all local government taxes other than school taxes would fall to $50,000. The new total annual tax bill would be about $1,000 or about half of the old tax bill.
Do you live in a mobile home?
More than 1.1 million Floridians currently live in mobile home or manufactured housing parks and communities. Currently, if you live on a leased lot in a park or community, you are paying tangible personal property taxes on your porches, sunrooms, storage rooms, and carports. With the passage of Amendment 1, you will have an exemption up to $25,000…so most of you will no longer pay this tax at all!
Comparison chart
How would Amendment 1 help rein in local government spending?
Amendment 1 isn't just about cutting taxes. It is about controlling government spending. It is a reality check for local governments that feasted on escalating property values over much of the past decade instead of lowering tax rates. As property values rose, tax collections soared. Levies doubled between 1997 and last year, including 42 percent in just three years. Property taxes grew three times faster than growth in population and inflation combined. Even after lawmakers approved a rollback of the tax rate last year, almost half of Florida's cities and counties set their rates higher. Others raised fees for services, like fire protection, that should be paid for through property taxes.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
What are the Basic Facts on Amendment 1?
Passage of this amendment is critical to the future of Florida and it will put money back into the hands of most Florida property owners.
1) The property tax cut plan on the January 29 ballot would save taxpayers nearly $10 billion over five years.
2) Floridians have the power to cut property taxes by voting 'Yes on 1' on January 29, 2008.
3) Property taxes have doubled in the past six years, outpacing the average growth of homeowner’s salary.
4) Local governments have used their increase in revenues to greatly expand their budgets and reserves, instead of returning it to Florida’s families and small businesses.
What are the key benefits of Amendment 1?
Where Can I Get More Information on Amendment 1?
For more information about Amendment 1, visit: www.YesOn1Florida.com.
How Will Floridians Gain Property Tax Relief?
With the passage of Amendment 1, citizens will gain the freedom to purchase a new home without huge tax penalties, and rental home owners, second home owners and businesses will benefit by limited future tax increases. The amendment contains two provisions: doubling the homestead exemption and portability of the Save Our Homes tax benefit.
1) Double the homestead exemption for almost all homeowners, providing an average savings of about $240 annually. The new exemption applies fully to homesteads valued over $75,000 and partially for homesteads valued over $50,000. This new exemption does not apply to school taxes.
2) Allow portability: The Governor has heard from many constituents that they feel trapped in their homes. Portability will allow homeowners to transfer their Save Our Homes tax benefits from their old home to a newly purchased home. Portability applies to homes purchased in 2007 and later, and the benefit is capped at $500,000.
How Does Portability Help People Who Want to Move?
Amendment 1 benefits those who want to move into a different home, seniors seeking to downsize, and business owners facing rising property values.
Looking for a larger house?
If you bought a house for $95,000 in 1995 and its current market value now is $300,000 and the assessed value is only $150,000-- you could transfer the full $150,000 difference to buy a more expensive home.
If the purchase of your new home costs $400,000, you would be paying about $6,300 in taxes without portability. But with the tax savings from Amendment 1 including the Save our Homes portability and the double homestead exemption, the new annual taxes would be about half or $3,600.
Want to downsize?
Under the new tax plan, portability also will apply if you want to move to a less expensive property. Instead of transferring the difference, your transfer will be your existing Save our Home percentage.
For example, if you live in a $300,000 house with an assessed value of $150,000, you pay taxes on $125,000 or about $2,100. If you wanted to move to a $200,000 condo the savings will be significant.
In this case, you would bring 50% or $100,000 in savings that reduces your assessed value to $100,000 on the new property. With the newly increased $50,000 homestead exemption from Amendment 1, the taxable value for all local government taxes other than school taxes would fall to $50,000. The new total annual tax bill would be about $1,000 or about half of the old tax bill.
Do you live in a mobile home?
More than 1.1 million Floridians currently live in mobile home or manufactured housing parks and communities. Currently, if you live on a leased lot in a park or community, you are paying tangible personal property taxes on your porches, sunrooms, storage rooms, and carports. With the passage of Amendment 1, you will have an exemption up to $25,000…so most of you will no longer pay this tax at all!
Comparison chart
How would Amendment 1 help rein in local government spending?
Amendment 1 isn't just about cutting taxes. It is about controlling government spending. It is a reality check for local governments that feasted on escalating property values over much of the past decade instead of lowering tax rates. As property values rose, tax collections soared. Levies doubled between 1997 and last year, including 42 percent in just three years. Property taxes grew three times faster than growth in population and inflation combined. Even after lawmakers approved a rollback of the tax rate last year, almost half of Florida's cities and counties set their rates higher. Others raised fees for services, like fire protection, that should be paid for through property taxes.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Thursday, January 03, 2008
Mortgage Forgiveness Debt Relief Act of 2007
On December 20, 2007, a new bill amending the IRS tax code (HR 3648) was signed into law. This new law is known as the Mortgage Forgiveness Debt Relief Act of 2007 and it was enacted to help distressed homeowners who must either sell their homes or face foreclosure. The new law reverses the longstanding IRS position that debt forgiven by a lender during a pre-foreclosure sale would be classified as imputed (i.e. taxable) income to the homeowner. Removing this tax consequence should allow more distressed homeowners to sell their properties prior to foreclosure and increase our chances of capturing this business. The following are some highlights of the new law:
- It is a retroactive and temporary change to the tax code, mortgage debt forgiven by a lender between January 1, 2007 and December 31, 2009 will not be deemed taxable income to the homeowner. (must still report it to the IRS)
- It does not apply to investors; it only applies to taxpayers' principal rsidences that they have occupied for two or more years.
- The mortgage debt forgiven will only be the "acquisition indebtedness", the sum total borrowed for the acquisition of the property. Refinances of this debt would also qualify, but only up to the total amount borrowed to purchase, and in some cases to substantially improve, the property.
- A maximum of two million dollars of mortgage debt may be forgiven.
Since every case is different, please check with your attorney and CPA to see if you qualify.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
Tuesday, January 01, 2008
Happy New Year!!!
Happy New Year everyone! It's amazing that yet another year has passed and it's already 2008. Before going any further, I want to thank all of you so much for everything you do. I really appreciate it. If you are a regular reader of this blog, I'm sure that you know that at least ninety percent of it is real estate related. Every once in a while I come across something that has nothing to do with real estate that I would like to share. Since it is the beginning of a new year, I felt it was an appropriate time to share a quote from George Carlin. Yeah, you did hear me right, George Carlin the sometimes obnoxious comedian. It is pretty long, but I hope you enjoy the quote below.
The paradox of our time in history is that we have taller buildings but shorter tempers, wider Freeways , but narrower viewpoints. We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes. These are days of quick trips, disposable diapers, throwaway morality, one night stands, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stockroom. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever.
Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side.
Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, 'I love you' to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you.
Remember to hold hands and cherish the moment for someday that person will not be there again.
Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
The paradox of our time in history is that we have taller buildings but shorter tempers, wider Freeways , but narrower viewpoints. We spend more, but have less, we buy more, but enjoy less. We have bigger houses and smaller families, more conveniences, but less time. We have more degrees but less sense, more knowledge, but less judgment, more experts, yet more problems, more medicine, but less wellness.
We drink too much, smoke too much, spend too recklessly, laugh too little, drive too fast, get too angry, stay up too late, get up too tired, read too little, watch TV too much, and pray too seldom.
We have multiplied our possessions, but reduced our values. We talk too much, love too seldom, and hate too often.
We've learned how to make a living, but not a life. We've added years to life not life to years. We've been all the way to the moon and back, but have trouble crossing the street to meet a new neighbor. We conquered outer space but not inner space. We've done larger things, but not better things.
We've cleaned up the air, but polluted the soul. We've conquered the atom, but not our prejudice. We write more, but learn less. We plan more, but accomplish less. We've learned to rush, but not to wait. We build more computers to hold more information, to produce more copies than ever, but we communicate less and less.
These are the times of fast foods and slow digestion, big men and small character, steep profits and shallow relationships. These are the days of two incomes but more divorce, fancier houses, but broken homes. These are days of quick trips, disposable diapers, throwaway morality, one night stands, overweight bodies, and pills that do everything from cheer, to quiet, to kill. It is a time when there is much in the showroom window and nothing in the stockroom. A time when technology can bring this letter to you, and a time when you can choose either to share this insight, or to just hit delete...
Remember; spend some time with your loved ones, because they are not going to be around forever.
Remember, say a kind word to someone who looks up to you in awe, because that little person soon will grow up and leave your side.
Remember, to give a warm hug to the one next to you, because that is the only treasure you can give with your heart and it doesn't cost a cent.
Remember, to say, 'I love you' to your partner and your loved ones, but most of all mean it. A kiss and an embrace will mend hurt when it comes from deep inside of you.
Remember to hold hands and cherish the moment for someday that person will not be there again.
Give time to love, give time to speak! And give time to share the precious thoughts in your mind.
Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
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