The Killer Real Estate Tax Pill

Property taxes provide the bulk of local government revenues in Florida. They account for a large portion of the revenue needed to provide fire protection, education, law enforcement and other services. Unfortunately, this tax system does not make sense in times of economic difficulty and the rapid erosion of real estate values.

While the owners of Florida real estate are looking to lower their property tax burdens, cut monthly expenses and increase cash flow, the state and local governments are facing huge budget deficits and are resistant to simultaneously significantly lower tax assessments. Of course, this could not be happening fast enough for all of us.

Why should an investor who is willing to risk a sizable amount of cash in a bank owned condo in Miami, for example, have to pay taxes based on unjustified taxable values? It is time to change our outdated and unrealistic Florida laws and statutes that govern property tax assessments.

In the event that you are wondering what rights you have to dispute your tax bill, you need to know the basic facts and steps involved in this process:

The Basics – Property taxes are levied on an annual basis. Taxes are paid in arrears, at the end of each tax year, for the period January 1 through December 31. Property taxes become a lien on all real estate in Florida on January 1st each year. Taxes are payable to the county tax collector on or after November 1st each year. You may make your payments in four installments or in one lump sum. Property taxes for the previous year become delinquent on April 1st.

Protesting Your Property Assessment – You are entitled to protest your property assessment and Florida has a three-step process:

• Step One. You have only 25 days to protest your assessment from the date that it is mailed. If your arguments are valid, the county property appraiser is authorized to make a change. If your request is rejected, move on to step two.
• Step Two. File an appeal with the Value Adjustment Board. This five member board is made up of five members, three county commissioners and two county school board members. If you are denied again, call your lawyer and proceed to step three.
• Step Three. The final step available to you is litigation in the courts.You may pay the taxes under “protest” and file a suit against the county property appraiser and county tax collector.

Nonpayment of Real Property Taxes - Property taxes constitute a lien superior to all other liens on real property. Special assessments are next in order of priority. Unlike other liens and debts, property taxes and special assessments become liens as soon as the assessment is complete. Unpaid property taxes are considered a debt and the property is considered security for the debt and may eventually be sold to repay the obligation.

Property Tax Certificates - A property tax certificate in the amount of taxes owed is issued to repay for each delinquent property. The holder of a property tax certificate may force a public auction of the property after TWO years by requesting a tax deed.

If you need any additional information, or would like to discuss a specific real estate issue, please contact us at info@miamiangelproperties.com.

The Metropolis Foreclosure

ASKING PRICE: $234,000   *SOLD PRICE: $255,000*

Description | The Metropolis is a classic art deco building that was constructed in the mid-1930’s. It has been beautifully restored and is located in the heart of South Beach. Walk one block north to Lincoln Road Mall for dinner at Quattro, four blocks east for a swim in the ocean or two blocks south to play tennis in Flamingo Park. This two bedroom unit has a fantastic layout, with a huge open kitchen, upgraded bathrooms, flooring and window dressings - Call or email us today to view this art deco unit -305.673.5300 or info@miamiangelproperties.com.

Address | 934 16th St. #5, Miami Beach  -   map it

Property Type | Condominium
Year Built | 1937
Living Area | 920 SF or 85 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | N

Download a full description (PDF):

934_16th_street__5  (Right click the link and choose “Save link as”)

Brickell Key Bank Owned

PRICE : PRICE: $800,000  **PENDING SALE**

Description | Live on the exclusive Brickell Key at the luxurious Carbonell with 2 balconies, 10 ft ceilings and lots of open space.  Take advantage and call us today to view this property and your opportunity -305.673.5300 or email us at info@miamiangelproperties.com.

Address | 901 Brickell Key  map it

Property Type | Condominium
Year Built | 2005
Living Area | 1,944 SF or 181 m2
Bedrooms | 3
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

901_brickell_key_blvd_unit_2606 (Right click the link and choose “Save link as”)

Miami Beach Loft Foreclosure

PRICE : $196,900  **BANK-OWNED**

Description | 2 levels, 2 bedrooms, 2 bathrooms, and 2 good to be true, nope, this is bank owned and priced to sell.  There are only 22 exclusive condo/loft residences in this boutique waterfront building. If you are looking for something new, affordable, waterfront, this is the time to take full advantage, call us today to view this property and your opportunity -305.673.5300 or email us at info@miamiangelproperties.com.

Address | 2000 Bay Drive #203  map it

Property Type | Condominium
Year Built | 2005
Living Area | 1,346 SF or 125 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

2000_bay_dr_203 (Right click the link and choose “Save link as”)

Lincoln Road Mall – 1111 Project

One of the many great pleasures available to the residents and visitors to the city of Miami Beach, is enjoying the many shops, cafes, restaurants, galleries and theatres that make up the Lincoln Road Mall. Carl Fisher, the founder and developer of Miami Beach, originally named the street after his favorite president.

Following a $600,000 transformation in 1960, this stretch of Lincoln Road became the first pedestrian mall in America. This nine-block open air pedestrian mall extends from Washington Avenue west to Alton Road.  The block between Lenox Avenue and Alton Road is currently undergoing a major tranformation, and although slightly behind schedule, it will add yet another major architectural treasure to our beloved Lincoln Road Mall.

At the entrance to this block you will find the Banana Republic store at 1100 Lincoln Road. This building was the former branch of the Chase Federal Savings and Loan and is historically protected. Enter the store and you will shop upstairs in the bank vault and pay for your items at the original teller’s counter.

The majority of this block on the south side is occupied by the Regal Cinemas South Beach, which is a hugely popular cinema and hosts many internationally recognized film festivals. If you look over to the north side of street, you will see the construction on the new Eleven Eleven Lincoln Road project. This site was until recent times an empty parking lot, however, it was the original site of the Miami Beach First National Bank building, which was the first bank founded in Miami Beach in 1921.

Robert Wennett, the developer of the 1111 Lincoln Road Project, arrived in Miami from Washington in 2003. After building a contemporary townhome overlooking the Miami marina, he then proceeded to purchase the SunTrust building on Lincoln Road. Following teaming up with Swiss artist Rene Buser, and Swiss architects Herzog & de Meuron, he then decidied to add an incredible open-air garage with floors up to 30 feet in height, a structure he terms a “parking sculpture.”

The Miami Beach Preservation Board approved the building variances and approved the impressive design, and Wennett agreed to extend the Lincoln Road Mall and pay for the park to be designed by the same architects as well. The estimated $70 million project involves renovating and expanding the existing SunTrust building to 50,000 square feet of retail and 100,000 square feet for office space for MTV, Nickelodeon and other creative businesses.  It will also include a spa, a rooftop restaurant with 360-degree views, and five residential penthouses.

Featured in the Architecture section of the Art Basel Miami Beach magazine, Wennett described his development as a “Design-driven, experienced based venue. Another luxury mall would have been the kiss of death here. This is a cultural site as much as retail site, featuring tenants who will treat their spaces like evolving, curated art galleries rather than stores.”

I am looking forward to the completion of this exciting project and think that it will be fantastic new venue on this our world famous Lincoln Road Mall.

December’s Results – Miami

It’s no secret on the street, and even in the national press, that the sales of existing homes has picked up around the country. In Miami, this has definitely been the case in the past few months. What has led to this local trend is directly related to the increase in the number of sales of bank-owned and pre-foreclosure [short sale] properties.

With such a large number of inquiries from clients and prospects, we have decided to start publishing the detailed lists of these distressed condominium sales in both the Miami Beach [less than $500,000] and Downtown Miami or Brickell District.

The following spreadsheets includes the following details: Complex or Project Name, List Price, Number of Bedrooms/Bathrooms, Property Address, Sale Price, Living Area (in square feet), List Price per Square Foot, Days on the Market, and Sales Price per Square Foot:

Brickell / Downtown_Pre-Foreclosure / Short Sales – DEC 2008

Brickell / Downtown Bank Sales – DEC 2008

Miami Beach_Pre-Foreclosure / Short Sales – DEC 2008

Miami Beach Bank Sales – DEC 2008

For any additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

The data used to generate this chart is gathered from the Southeast Florida Multiple Listing Service (“MLS“). The data in the MLS is deemed reliable but not guaranteed. This data is for December 2008 for single family homes, unless otherwise indicated as condominiums. The prices are the actual sales prices of all single family or condos that closed during the month of December 2008.

Blue Bay Tower Pre-Foreclosure

PRICE : $269,000

Description | Just when you think you know all the buildings in Miami Beach with the best pools, you come across this gem.  Brand new, pre-foreclosure, great opportunity, need we say more?  call     305-673-5300     today to check out the opportunity.

Address | 7929 West Drive # 1202  –   map it

Property Type | Condominium
Year Built | 2005
Living Area | 1,334 SF or 124m2
Bedrooms | 2
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

7929_west_drive-1202 (Right click the link and choose “Save link as”)

Waverly Miami Beach Foreclosure

PRICE : $260,000  **CLOSED SALE $250,000**

Description | This is another turnkey investment, at a great price with a view.  Located in the popular Waverly within walking distance to Lincoln Road, Whole Foods, and the spa at The Standard.  call    305-673-5300    today to check out the opportunity.

Address | 1330 West Avenue, Unit 1011, Miami Beach  -  map it

Property Type | Condominium
Year Built | 2001
Living Area | 1,084 SF or 101 m2
Bedrooms | 2
Bathrooms | 2
Waterfront | Y

Download a full description (PDF):

1330_west_ave_1011 (Right click the link and choose “Save link as”)

Miami Real Estate – December 2008

Summary - December 2008

For the month of December 2008 vs. November 2008, we experienced a substantial 74% increase in the number of closed sales versus the prior month. This increase in sales was predominantly focused in the Downtown/Brickell, Miami Beach and Coral Gables areas.

Recently, everyone has been talking about the big increase in sales of bank-owned properties or those in pre-foreclosure [short sales] and here is why. If you look at the combined total of 165 sales in Downtown/Brickell and Miami Beach condos [under $500k], a total of 95, or 58%, fell into this category. We think that the supply of bank owned properties will continue to climb as will the percentage of bank owned sales. Another fact that we should pay attention to, whether you are a real estate practitioner or investor, is that the majority of December’s distressed sales, or 73%, were bank owned properties and not short sales.

There was also an impressive increase in the number of sales of condos over $500,000 in Miami Beach versus November 2008. It should also be noted that more than 50% of these sales included some form of “jumbo” conventional financing. Apparently, the supply of jumbo mortgages is not so dire for Miami condos. I would also like to add that five luxury homes traded hands in Miami Beach in December, including waterfront locations on the Sunset Islands, Pinetree Drive, Allison Island, San Marino Island and Rivo Alto Island.

Featured Sales – A Downtown Loft and A Luxury Home

The Baylofts - 455 NE 25th St., Miami

This month’s featured sale was the purchase of a 2 bedroom, 2 bathroom loft condo in a new building near the Miami Performing Arts Center. The all-cash buyer paid $130,100 for 965 square feet [90 m2] of living space in a building that was constructed in 2004, which equates to a price of $135 per square foot! This unit features a wrap around balcony, 10 foot ceilings and stainless steel appliances. The best part is that the monthly maintenance fee is only $383, and with such a low purchase price, this condo was an absolute steal. We should also recognize that the most recent sale of an identical two bedroom unit in this building was at a purchase price of $238,100. This was a bank-owned property which was on the market for only 35 days and the original asking price was $129,900.

Sunset Island – 1525 N View Dr., Miami Beach

A Swiss buyer, Sonja Berchtold, as director of JP Investments I Inc., purchased this luxury waterfront home in late December for an all cash price of $6.25 million. This Caribbean Colonial residence has over 6,600 square feet (613 m2) with 5 bedrooms and 5.5 bathrooms and sits on almost an acre of land and with 165 feet (15.3 metres) of open bay frontage and direct access to the ocean. The seller, Rand Skolnick, purchased the home in February 2002 for $4.2 million. The original asking price was $8.9 million and after six months on the market the home sold for practically thirty percent less, or $6,250,000.

For any additional information on Miami real estate, foreclosures, short sales or bank owned properties, please contact us at info@miamiangelproperties.com or call 305.673.5300.

The data used to generate this chart is gathered from the Multiple Listing Service (“MLS”). The data in the MLS is deemed reliable but not guaranteed. This data is for December 2008 for single family homes, unless otherwise indicated as condominiums. Homes that are pending sales have had offers made on them, and those offers have been accepted by the seller, however the sale has not yet closed. The prices are the actual sales prices of all single family or condos that closed during the month of December 2008.

Miami Beach Mediterranean

PRICE: $999,000 or **$226 psf **

Description | This family size Mediterranean home sits on double lot in mid-Miami Beach. South Beach is just a short five minute drive, walk to the Miami Beach golf course or spend the day with your family on our many fantastic beaches. This home has great energy, lots of natural light, a huge master bedroom and even a private guest house and garage.

For additional information on this property or other single family homes in Miami Beach, please email us at info@miamiangelproperties.com or call 305.673.5300.

Address | 738 W 50th St.  -  map it

Property Type | Single Family Residence
Year Built | 1940
Living Area | 4,422 SF or 410 m2
Bedrooms | 6
Bathrooms | 5
Waterfront | N

Download a full description (PDF):

738_w_50th_st (Right click the link and choose “Save link as”)

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