Over the last three years, there has been a record surge of foreign investments in Florida housing which boosts the property tax revenue in the localities hit hardest by the recession.
In a recent Bloomberg report, the 10 Florida counties with the highest amount influx of international cash since 2010 had their property tax assessments increase to an average of 4.1 percent this year. For the rest of the state, they are left behind with half that number.
Norman Edelcup, Sunny Isles Beach mayor, says, “It’s all been attributable to the foreign buyer.” Sunny Isles Beach is one of the cities enjoying this boost in tax revenue where values rose to 10.2 percent this year.
These foreign purchases help localities in south and central Florida recover from the 18-month recession which unfortunately left the state with the second-highest foreclosure rate, just behind Nevada, depressing prices and tax revenue.
Earlier this year, Miami-Dade Mayor Carlos Gimenez travelled to Spain and France in an attempt to lure home buyers from those countries.
Chris Lafakis, a senior economist at Moody’s Analytics Inc. in West Chester, PA said developers and local governments are expecting even for money from foreign purchases. Anticipating construction to pick up in 2014 and 2015, it’s expected that there will be a stronger international and domestic demand.
Clearly, the South Florida real estate market doesn’t have signs of slowing down anytime soon. Take this opportunity to invest in the growing South Florida housing market! Get in touch with the Great Florida Homes Team to find out more about your options!
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