Tax Relief May Shoo Away Vultures

Posted in Real Estate Foreclosures, June 11th, 2007 |

The housing market is stuck in the mud. Numerous condos are crowding the stalls Prices are tumbling. Buyers are ready to strike the fallen and grab big bites.

Florida Legislature plans to consider lowering taxes on property in its next session, starting next week. The vultures are afraid that this might put a stop to clinching low cost deals. Who are these vultures? They are individuals as well as giant investor groups prowling around the regions for the right kill.

At the peak of the housing boom stretching from 2001 to 2005 everyone crowded into the real estate jamboree hoping for plump profits. But another class among them waited and watched from the sidelines knowing that the market would not be able to keep its toehold on such lofty peaks. Their plan was to chip in when the fall would start then ride up the hill at the next bend of the curve. The time factor was of most importance to these speculators. Some say that the market has not struck rock bottom as yet.

The coming session of the Legislature is causing hiccups. Some want to strike while the iron is hot while others are confident that the law would not be able to give much relief to the borrowers. If legislation takes place the sick market will be given a dose of medicine. But they do not want that – they want the patient to bleed a little more.

Not all are confident that the medicine will work. Compared to last year, 26,000 more homes have been listed for sale in two counties of Broward and Miami-Dade. Over the next one and a half year new condo units are expected to join the ranks in one county alone. Then there is the underhand game of unsold inventory as some units are put back into the market as resale. Insurance rates however are the same.

The big bully groups of vultures are not worried about the tax matter as by going in for bulk buying they can spread out costs across their many portfolios.

The market is too sick to respond to single dose of tax reduction alone. A big cut in property taxes might kick off a buying spree but effectively the bottom would be a false one. The prediction is that by 2010 the market will be standing up again – hale and hearty.

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