Several efforts have been made recently to try and encourage people to not only spend during a time when buyer confidence has decreased but to also assist homeowners in managing their property taxes. One of these as you’ve probably read about and has been covered thoroughly in news reports is the intended income tax rebate that’s on the brink of being passed. The others you might be aware of are the recent passing of Amendment 1 and the Fed interest rate cuts.
Selling a Miami Beach home in the current real estate market climate is tough, that’s already been well established. Let’s instead focus on the homeowners who may have been entertaining the thought of selling but were hesitant for fear of being slapped with a substantially higher property tax. Amendment 1 actually reduces annual taxes and ensures that should a homeowner move to a new place, they won’t suddenly find themselves paying higher taxes.
Consider senior citizens who have children that have since moved out and found their own place. These people may have wanted to downsize to something not quite as large but have resisted due to incurring higher taxes. The home they choose will more than likely cost less and what’s more, they’ll be paying the same amount as if they had never moved.
Anyone with a home equity line of credit will also see their rates lowered significantly, a great relief to anyone that may be struggling with making monthly payments and trying to avoid foreclosure. The tax rebate can also be used towards such payments or put away for some other big life investment like buying a new car, accruing money for a Miami Beach condo down payment or keeping around for any unforeseen emergency situations.
Tax cuts and rebates, interest rate reductions, they all go a major way towards restoring faith in the Miami Beach real estate market as well as throughout the country. This year may finally be the one where things slowly begin to point a much better 2009 market climate.
