Florida Mortgage, Real Estate Q & A
Readers of the South Florida Sun-Sentinel write in with their housing and Florida home mortgage questions. Below, the newspaper’s Paul Owers does a good job answering them.
Q: I have $100,000 that I would like to invest in flipping houses, but with this crazy market, people are telling me that this is not a good business. Should I wait, and where is the best area in the South Florida housing market to buy cheap, small houses?
A: Small houses are available across the region, particularly in northeastern Broward County and in the central corridor of Palm Beach County near Summit Boulevard. But generally speaking, it’s best to wait for the market to improve before trying to buy and sell properties for a quick profit. Many short-term investors are finding that it isn’t working out the way they had hoped. They’re stuck with properties they can’t sell and, in some cases, facing Florida mortgage foreclosure.
Even when the market rebounds, be careful. People who flip properties are counting on prices increasing substantially over a short period of time, but analysts expect only modest increases during the next several years.
Q: Based on what is selling monthly, how do you see this three-year-plus inventory of homes for sale affecting the Florida housing market for the next several years?
A: Most experts agree it will take years to sell all the properties on the market now. There are more than 30,000 homes and condominiums for sale in both Broward and Palm Beach County, and the numbers will grow in the months ahead as people lose their homes to foreclosure.
That could improve if Florida lawmakers address the property tax crunch, giving people more confidence to buy homes.
Q: What are the requirements to become homesteaded? And where do you apply?
A: Florida residents are entitled to a $25,000 homestead exemption on their primary homes. To be eligible for an exemption this year, you must have owned and lived in your home, condo or co-op unit as your permanent residence as of January 1.
According to the Broward County Property Appraiser’s web site, you also would be eligible if you hold a life estate interest in the property or reside on the property owned by a trust and live there pursuant to the terms of the trust.
Q: Can property tax rates go up any time or just once a year? What other taxes do I have to pay if I buy a condo?
A: Property taxes are assessed once a year. Broward and Palm Beach counties send out tax bills by November 1. Taxes vary for properties, depending on location. Your home could be subject to taxes by a number of authorities, such as Broward County, the school board, a particular city, and the South Florida Water Management District.
Q: My house has been on the market for six months. It’s in a great area and priced right and I have a good real estate agent, but no buyers. Not even many showings. What can we do to sell this house?
A: Houses that sell in this soft market are well-maintained and priced slightly below others in the area, agents say.
Make sure your real estate agent is marketing the property on the multiple listing service and on the Internet at such sites as Realtor.com. Also make sure you have plenty of online photos that showcase the entire house. If you still aren’t getting much interest after several months, it’s probably time to lower the listing price.
SOURCE: South Florida Sun-Sentinel
