Real Estate Information: 2008-02-17

Real Estate Information

Real Estate, Home Improvement, Remodeling and Interior Design advise from professional resources in the industry to help you with any of your Real Estate projects.

I'm Jack F
From Miami, Fl

Tax Cuts To Have Slow Effect On Boca Raton Real Estate Market

Just how much the Florida property tax amendment will help jump-start the sluggish Boca Raton FL real estate market overall is the big question. Most analysts say it will boost sales only modestly in the short term. The amendment enables owners of homesteaded property to carry up to $500,000 in tax benefits to a new home if they have sold one property after Jan. 1, 2007, and purchase another within two years.

Homeowners who downsize to a less expensive Delray Beach condo can carry a proportionate amount of savings. If they had shielded 40 percent of the market value of the old home from the tax collector, they can shield 40 percent of the market value of the new one.

The homestead exemption will increase to $50,000 from $25,000, except for the school-tax portion of the bill. That is equivalent to about a $15,750 additional homestead exemption in Miami-Dade County and $16,000 in Broward County, or an average of $240 a year per home in tax savings statewide.

Florida Real Estate Rebounds On A Slow Track

The national housing market could hit bottom this year, but Florida real estate likely will need longer to recover from its steep downturn. That’s the outlook from three prominent economists who spoke to home builders Wednesday at the International Builders’ Show here.

Florida enjoyed outsized home pricing and fevered sales at the height of the housing boom. Now the state is suffering in equal measure from the correction. Cities in Florida ranked at the top of the 20 U.S. metropolitan areas with the most foreclosures in 2007, according to RealtyTrac Inc., a California broker of real estate data.

Miami ranked eighth among those 20 cities; Fort Lauderdale was 10th and Orlando was 20th. Foreclosures add to inventory, which in turn keeps prices down. The hard-hit areas all share a common characteristic: a glut of homes for sale. Before prices can turn up, excess inventory must be exhausted.

Experts in Palm Beach County real estate say that they expect the housing market to continue to weaken until later this year, indicating that the combination of federal tax rebates and drastically reduced activity by builders will allow home sales to hit bottom in late 2008.

Maintaining A Credit Card Balance May Affect Your Ability To Borrow

Carrying a month-to-month credit card balance, even as little as $1,000 to $1,500 balance may not be the best idea. Why? Come time to apply for a new mortgage, or refinance an existing loan, lenders may see the credit card balance as an indication of poor financial planning on your part. Some folks, with adequate income could very easily pay the card in full at any time. Lenders may see this as a lack of willingness to pay-down debt obligations.

Also, carrying a credit-card balance can hurt your credit history and credit score, depending on who issued the card you’re using. Some credit-card companies report your balance as if you had maxed out your credit limit. It may not happen to you, but you’d be wise to pull a copy of your credit history from each of the three credit-reporting bureaus (you’re entitled to do this once a year for free from www.annualcreditreport.com) and then pay for a copy of your credit score ($5 to $7 at the same Web site depending on which credit score you choose).