Time to Sell Florida Investment Property?

Hi All,

I've been getting a ton of calls from Florida property owners lately. There is a very good reason for this.

Three things have happened in the Florida real estate market in recent years.

First, property values have increased dramatically. That's good news, of course.

Second, property is being reassessed for the higher values and property taxes are increasing rapidly. Not so good...

Third, due to the recent hurricanes, homeowner's insurance is either being canceled or has become so cost prohibitive that many people can no longer afford it. Again, not good for owners.

My parents live in Florida on a fixed income. They own their home outright, so have the option of not having home owner's insurance. Their carrier is pulling out of the Florida market completely. The 'replacement' carrier is almost tripling the premiums and increasing the deductible. They have decided to take their chances and go without.

For those with mortgages, this is not an option. Most lenders require you carry insurance.

So, now many retirees are finding they can no longer afford to remain in Florida. They are selling their homes and moving to places like the Carolina's and Georgia. Those with second homes are also selling.

Their residences have often appreciated and the sellers will face capital gains issues.

Also, many people own rental properties in Florida. What used to generate a decent income for them, now barely turn a profit. With the tax and insurance increases, the rent profit is diminished considerably. Rents cannot be raised enough to offset the expenses.

Here also there will be a capital gains tax problem on sale.

There are ways to minimize this burden. If you are selling Florida property or know someone in this situation, fill out a questionnaire or call me at 760-917-0858. I can help.

Paula Straub

ps. Check out the new Beginner's Guide to Saving Capital Gains Tax