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Naples Florida Real Estate News - 08/17/07
REAL ESTATE TAX PORTABILITY - A proposal to let homeowners take at least part of their existing tax breaks with them when they move received a cool reception Thursday from part of a commission studying Florida’s tax structure. Real estate or homestead portability would help property owners to move into a smaller residence without paying more in real estate taxes than their present home. As real estate tax "entrapped" sell and move into more affordable housing, it will also free up what could be affordable housing for other sectors of the population. Of course, it would depend upon home owners finding a buyer and the buyer finding a loan program that they qualify for.
MORTGAGES - Countrywide Financial Corp., the nation’s largest mortgage holder, announced yesterday that it borrowed $11.5 billion so it could keep making home loans, a move that will make it harder for homebuyers to get financing. To maintain ongoing liquidity, Countrywide says that 90 percent of its loans will now be conforming, and it will cut out most subprime, alt-A and jumbo loan products.
The change in Countrywide’s loan programs could result in a negative effect on the affordable housing issues faced in the Naples, Bonita Springs and Estero real estate markets.
MORTGAGE RATES
Rates on 30-year mortgages edged up slightly this week, to 6.62 percent, after falling for three straight weeks. Mortgage experts, however, don’t expect any more increases over the next few weeks. Due to the Fed lowering its discount rate on loans to banks by a half percent in hopes of calming the markets. This will help to alleviate the liquidity issues.
REAL ESTATE INVESTMENT - In a typical real estate climate, higher home prices drive a greater demand for rental units. But in today’s non-typical climate, rental rates aren’t high enough to equal recent investors’ expenses for the mortgage, insurance and taxes. However, there maybe still be a good opportunity for real estate investment for tax sheltering purposes due to future appreciation, as well as, income tax benefits, all of which can still yield positive after-tax cash flow.
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I agree that we need homestead tax exemption portability. People get locked into their homes because if they move and spend the same amount of money their taxes sometimes double and triple. If it were me I would stay put too.