On Tuesday, November 4, 2008, Americans will be deciding who the next President of the United States will be, and Floridians will be deciding if we believe in true property rights and property tax relief.  There are nine (9) constitutional amendments on the ballot, including three (3) that impact homeowners.

 Do you think the Legislature should regulate or prohibit the ownership, inheritance and possession of real property by aliens ineligible for citizenship?                                                                                    

You may be surprised to learn that this provision already exists in our state constitution.  It was adopted in 1926 in conjunction with the California plan and aimed towards resentment of the Japanese.  Although adopted, the Legislature has never exercised its constitutional authority to regulate ownership of property.  To ensure that this never happens, the Legislature approved Amendment One (1) to remove this language from our constitution.  Now, it’s our turn to support property rights for all and approve Amendment One (1).

 For years, Floridians have been asking the state legislature to put forth comprehensive property tax relief for all, not just a few.  Because of disagreements on solutions between the 160 legislative members of the House and Senate, we have yet to vote on anything comprehensive….until now.  Thanks to the Tax and Budget Reform Commission (TBRC), we will have an opportunity to vote on relief for all during November’s Presidential Election. There are four (4) property tax proposals, but I want to briefly discuss three (3) that specifically address non-homestead properties. 

As an active residential Realtor® and office managing broker, I have often felt there should be a Web site to visit that would provide information on all available down-payment and closing cost assistance, reduced mortgage programs and/or rehabilitation for local, state and federal programs.  If we as real estate professionals need this information, I can only imagine how many times a future homebuyer has asked.  Finally, RAMB has created a solution. 

The Realtor® Association of Greater Miami & the Beaches (RAMB) has launched www.sfhomeprograms.com, a phenomenal master portal with key information to assist with purchasing or rehabilitation for both Miami-Dade and Broward Counties.  A future homebuyer would simply answer a few quick questions: 

During the 2008 State Legislative Session, Representatives Carlos Lopez-Cantera and Juan C. Zapata sponsored one of the most important bills for Miami-Dade County.  House Bill 1459 provided a 20-year extension for local housing assistance programs known as surtax.  More importantly, it created an incentive for Employer Assisted Housing (EAH) programs, a win - win for all. Originally passed in 1983, surtax has generated over $400 million for affordable housing.  Since surtax levies 45 cents per $100 on all commercial transactions in the county for the benefit of residential housing, some have considered this an unfair tax.  Incredibly, this legislation alleviates some of that concern by allowing commercial property owners and corporations to reserve 50% of the paid funds for their own employees who qualify under certain conditions.  Under the “Housing Choice Assistance Voucher” program:

Just last week at SIMA08, Madrid (Spain) Real Estate Expo, and Salon de l’Immobilier – Porte de Versailles, RAMB conducted exhibits, seminars, interviews and meetings promoting the South Florida real estate market for serious and qualified European buyers.

Miami and South Florida were naturally huge draws for the crowds of French and Spanish visitors at both of these premier events. European buyers benefit our market by sustaining rates of appreciation and strengthening the local economy.  RAMB takes advantage of South Florida’s unique marketplace and RAMB’s valuable international partnerships to position local real estate at the forefront of international expansion.

Miami is the most international city in the U.S.  Miami-Dade County is home to more foreign-born residents than any other county in the entire country.  International real estate buyers are a significant part of what will keep South Florida in demand for years to come and the local economy resilient.    International buyers are naturally attracted to South Florida’s warm weather, beautiful beaches, outdoor sporting activities, exciting nightlife, and cultural diversity. Taking advantage of South Florida’s unique marketplace and international appeal and targeting foreign buyers is important and benefits our economy and local communities. 

On October 15, 2007, Kathleen Casey-Kirschling marked a milestone.  She became the first baby boomer in the U.S. to retire.  Over the next 10 years, over 78 million baby boomers are expected to do the same.

More than 26 percent of the population in the U.S. today is part of the baby boomer generation, which technically includes those born between 1946 and 1964.  Members of this high-number-of-births generation are characterized by high workforce participation, strong levels of education, and higher-than-average net worth.

A Baby Boomer Profile was compiled from a survey conducted by Harris Interactive for the National Association of Realtors® (NAR).  The report provides insight into this generation’s strong connection with real estate, and points to the impact they are having and will have on the real estate market, especially in places like South Florida.

Real Estate Boom Expected in Five Years - Miami is transitioning into a major cosmopolitan city – and the local residential real estate market is expected to thrive again within five years according to National Association of Realtors Chief Economist Lawrence Yun.  

Yun also points to wealth accumulation as a factor not considered when analyzing simple home price to income ratio in Miami. 

“There is no reliable wealth or life time savings information at the local metro level.  A financially stable retiree may have a rather low yearly income from social security checks and pension income, but that same person may have a cool million dollars or two sitting in the bank,” said Yun.  “Yet, because there is no reliable published wealth data, many analysts just use the income measure and totally ignore wealth info.  Trust me New Yorkers and other snowbirds who are moving to Florida will have a thicker bank account than others.”  Why Miami’s housing market will be so robust within five years:  

 “Miami home prices could increase 20-30 percent in five years” 

In his recent commentary titled “Miami Confidential”, National Association of Realtors® Chief Economist Dr. Lawrence Yun indicates those who buy real estate in Miami now are likely to see strong appreciation and high returns on purchase prices in just a few years despite the current oversupply of condos. 

“In five years, do not be surprised if home prices in Miami are 20 to 30 percent higher than the current levels,” said Yun.

  Miami and South Florida form the most international metropolitan area in the United States.  So, it comes as no surprise that Florida is the top state in the nation for international buying activity.  Twenty-six percent of all international sales activity takes place in the Sunshine State.  

As a world class destination, South Florida has a lot to offer to foreign buyers.  But European buyers get an added bonus when they purchase local real estate.  Already priced much lower than in other World Class Cities, South Florida properties are further discounted 25 to 50 percent due to currency exchange rates.  This in part is why European buyers account for 30 percent of all international real estate transactions in Florida and are an important part of South Florida’s strong economy.