• Mortgage Interest Deduction: long enjoyed by homeowners, this deduction has been recommeded to be eliminated as part of  large tax reform proposal
• Capital Gains – Exclusion on Sale of Residence:  reducing or limiting the capital gains exemption ($250,000/$500,000) on the sale of a home is also being discussed.
• Property Tax Deduction:  possibilty that current deduction would be reduced or eliminated.

NAR is tackling other issues as well via their 2012 Federal Public Policy Priorities.

The second property had several offers on the second day.  One agent had his buyer offer slightly over asking and put down 10% as an initial deposit, upon acceptance.  The seller accepted his offer.  Two days later, a higher offer came in from a buyer who was desperate because she had just lost out on a short sale and needs to move fast.

If you are a buyer, be ready to put your best offer forward early on.  If you are a seller and get multiple offers, don’t second guess your pricing or hold out for something even better.  The reality is that you get the most activity on a listing when it first goes on the market.  The longer you wait, the less you are likely to get.

I love the new look!

• crown molding
• baseboards
• updated kitchen with stainless steel appliances, granite counters & a pantry
• two full baths
• two good-size balconies

All this for $136 per squar foot!

• cash flow/opportunity cost:  not having money tied up in a mortgage, taxes, and insurance, allowed more money for investing, travelling, miscellaneous purchases 
• flexibility:  if they wanted to move into different neighborhood, change size , or relocate for a job, their choice is not dependent on first having to sell their home
• better lifestyle:  they argued that they could rent a nicer place in a nicer area than they could afford to purchase
• maintenance-free living:  don’t have to worry about repairs, yard work, pool cleaning

The pro-buyers argued that buying was better because:

• it builds equity: which helps build your net worth.  It is basically a forced way of saving money.
• tax benefits:  interest on a mortgage is currently tax deductible, thereby reducing taxes you owe
• gives you control over finances:  you are not subjected to rental increases
• stability:  since home ownership is fairly long term, owning a home creates a sense of security and community
• maintenance:  don’t have to wait for landlord to change or repair something.  Have control over quality of work of repairs and type of work done (i.e wood floors vs changing carpet)

Obviously both renting and buying have their pros and cons.  The New York Times rent vs buy analysis says that overall, if you stay in a place for 5 years or more, you are better off financially buying.  This analysis assumes that the landlord pays utilities, which for the most part in Miami-Dade is not the case.  The tenant usually pays all utilities, except for those that are provided by, and included in, the condominium’s maintenance fee.

So what side of the fence are you on and why?

- Updated kitchen with stainless steel appliances, gas stove, granite counters,

- Newer roof and septic tank

- Hurricane shutters

- 3bedroom/2 bath/1 car garage

$450,000.  7925 SW 55 Ave., details

The Jade was one of the first luxury buildings completed during the boom and provides a great historical perspective of the boom, bust and now rebound of Miami real estate.  There are currently 23 units listed for sale out of a total of 326 units.  The average price listing price per square foot is $629.  In 2004 the average price per square foot of units sold was $540 and at the height of the market ini 2007 it was $805.

Approximately one-third of the building is still owned by original buyers who purchased in 2004 and 2005.  That fact, coupled with the fact that the majority of the sales that took place in 2008 and 2009 were cash purchases, results in a very stable condominium association.