KW Property Management & Consulting

Property tax reduction news bears repeating; Sun-Sentinel
August 4, 2007

We have had plenty of bad news about the housing slump appear on the front page of the South Florida Sun-Sentinel for months now. While the articles are factual, they do nothing but compound the real estate crisis.

Now there is good news that needs to appear on the front page, so that readers can look at both sides of the housing issue. This seems only fair since the housing slump is detrimental to every segment of Palm Beach and Broward counties.

Now may be a great time to buy a home. The Florida Legislature has passed the largest property tax cut in history. According to a news release, lawmakers recently approved a five-year, $15.6 billion cut in property taxes for our state. When you rent rather than own a residence, the landlord gets all of the income tax benefits. These include deductions for mortgage interest and real estate taxes. These can be sizable amounts that will reduce your taxable income.

Right now we are in a buyers' market, with many motivated sellers. This will not last forever. The state Legislature's largest property tax cut in history should improve the housing market. Therefore, now may be the time to buy a home before prices start to go up again.

Ronald McGregor

Wellington

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