FEBRUARY 2008 Newsletter Well, Amendment 1 passed by over the required 60%, which now allows buyers to take their SOH (Save Our Homes) tax savings with them when moving to another Florida domicile (max $500,000). This is called Portability, which is retroactive to January 1, 2007.   It also doubles your Homestead Exemption to $50,000. So, if you 1)---- sold a homesteaded residence last year 2)---- the new residence qualified for Homestead exemption as of 1/1/08   3)---- you can apply for exemption and transfer with the County by 3/1/08. Any questions on this transfer should be directed to the county of residency. What does this mean to the Housing Market?   It is seen as a positive, coupled with continuing lower interest rates as well as the large selection of properties.   Non-homesteaded homes will also get a break in that their tax assessment cannot exceed 10% per year.    Legislators are not done with tax reform but at least two of the major issues are now behind us. It appears that next on the agenda is to remove school tax from the tax base, which could reduce taxes by an estimated 35-40%. HOWEVER – it will probably result in an increase in the current 6% sales tax to offset the tax loss.   Everyone talks about foreclosures – a nasty word but a reality.   Florida has about 2% of their 8 million plus homes in foreclosure – mostly caused by greedy speculators – according to the experts.   Hopefully, the Feds and the lenders would back off on some of the regulations to give people who have lost jobs a chance to recover. One possibility is to freeze the interest rates on adjustable mortgages. The banks certainly do not want the homes back as it just cost them additional dollars.      Insurance Reform is at a standstill. The carriers are very elusive, not granting the lower premiums they were asked to provide. Now the State leaders want hearings to determine why? An ongoing saga.    Another recent issue is the tightening of loan processing requirements. Countrywide has just advised all brokers to increase the down payment by 5%. Fannie Mae has indicated a 5% cut in a homes market value that a lender will finance. The 90% loans now become 85% loans.   The economy is seeing more and more foreign buyers looking seriously at the market because of the value of the dollar – many of which we are seeing locally. The Chief Economist for the National Realtors Association commented that the press continues to talk about the National Real Estate picture. He said that is like giving a weather report for the entire US without regard to weather differences by region.   As we have said in prior Newsletters, economists in most sectors indicate that south Florida has hit bottom and is on the way back up – unlike the majority of the country. He also predicts that the market should be back to normal operation by the 08-09 seasons. In the meantime sales are increasing at a steady rate. An interesting statistic – Nationally, 2007 was the fifth best year on record with home prices declining about 1.5% after a 50% run up in prices.   REMEMBER…if you need assistance or have questions about your investment in Paradise, please give us a call at the above number. We will be happy to provide you any information you may need when making a Real Estate decision. Do not forget to visit – and make part of your favorites - our website   www.naplesgolf-marcobreach.com