Florida Real Estate News - 03/08/07
FLORIDA PROPERTY TAXES
In a rush to show that lawmakers are serious about cutting property taxes, a House council passed a controversial bill Wednesday to sharply roll back local taxes even as Florida’s counties warned of "Draconian choices" they would have to make.
A more realistic method, rather than a quick fix as is being proposed is to legislate requirements that county governments need to have budgets that increase the lesser of the consumer price index or 3% per year. This would bring the Save Our Homes Amendment and county spending into line.
The cutting of property taxes is only the first phase of the proposal. The second phase would be to increase the state’s sales tax another 2.5% - equating to 8.5%.
The greatest savings in property taxes would be for businesses - might be good to increase the number of businesses coming into the state, thereby, creating a better tax basis. The second group to benefit would be the second or vacation homeowners that are exempt from the Save Our Homes Amendment. The least affected group would be the existing homeowners that have a homestead exemption on their homes.
It seems to me the most logical method would be for county governments to look more closely at their expeditures for running the county - ZERO BASE BUDGETING!!!
PROPERTY INSURANCE
After submitting a rate decline proposal to Florida’s government, Nationwide has resumed issuing notices to many homeowners that their policies won’t be renewed. The insurer stated that homeowners were given the required 100 days notice and that the carrier is merely following through on its strategic plan to no longer issue new property policies in Florida.
MORTGAGE FRAUD
The number of mortgage fraud cases investigated by the FBI almost doubled the past three years, reflecting a problem that is "pervasive and growing," the bureau said Wednesday in its annual report on financial crimes. The FBI also noted that those numbers likely only represent a small part of the problem.
Geez, the FBI is finally realizing that mortgage fraud is "pervasive and growing"! As a residential real estate broker, I readily see and hear about some situations that could possibly fall under mortgage fraud. One of the issues that faces the FBI, is that much of the potential fraud situations, in at least my residential real estate business is insignificant compared to what they want to deal with or investigate.
CONSTRUCTION
Most commercial businesses now back environmentally-friendly construction, or green building. But the nation’s major homebuilders, which account for 80 percent of all residential activity, say they have trouble finding buyers willing to pay for it.
I love the major homebuilders saying that - especially when home and condo prices have risen so much over the past few years (of course, the prices are coming down or big incentives offered). My personal thought is that it is a matter of affordability for most people looking to buy a home.
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