Calum MacKenzie's Blog

Understanding Florida Real Estate Taxes with Florida’s Amendment 1

Calum MacKenzie (Tampa Homes 24-7 LLC) — Mon, 30 Jun 2008 15:54:44 -0700

Florida’s real estate tax laws can be tricky to understand. There are several factors which affect the size of your property tax bill, so if you’re buying property in Florida or are relocating, it’s important to understand how taxes are calculated.

Property values are in constant flux just as the real estate market is, so getting an accurate, current assessment is important. The assessed value of the property you buy may change dramatically when it changes hands, so it’s good to be aware of the factors that might influence how much tax you pay.

As well as market rates your real estate tax bill will also depend on the tax rate for different local government bodies. The property you buy will be subject to taxes from several different bodies, including county and city government, the school board, hospital district, and water district. There may be additional taxes if you live in a masterplanned community.

On the other side of the coin, homestead exemptions and the “Save our Homes” amendment help limit the amount of your property tax bill.

County Taxes

The amount you pay in county property taxes will, of course, vary depending on the value of your property. However, they’ll also vary depending on the tax rate in your county, and where in the county you live. This is because within a county, some regions are incorporated and some are unincorporated, and unincorporated regions tend to have lower property taxes. If you live in Temple Terrace, some areas of New Tampa or the City of Tampa, for example, you’ll likely be paying more in property taxes than someone living in Lutz or some portions of New Tampa, as the former locations are incorporated and the latter are not. Unincorporated areas generally are lower because they do not have “city” taxes.

Community Development District Tax

People living in a Florida masterplanned community or community development district will likely have additional taxes to pay. These extra taxes are what enable the developers of these communities to add extra amenities to enhance the lives of residents. By sharing the cost of community and land development among residents, additional facilities such as recreation centers, parks, walking trails, and sports facilities can be added.

Depending on the community, the tax may have two separate parts. One is a fixed amount that is payable for a fixed amount of time (usually no more than twenty years) – the bond portion. The second amount can vary from year to year depending on the needs and budget of the community. If you’re interested in relocating to one of these communities it’s important to find out how much residents are expected to pay each year, as the total varies widely depending on the community, the different villages within the community and the types of facilities and services the master planned community provides as a whole.

Note that the responsibility for paying these taxes is tied to the property, not to the owner. If the property changes hands, payment of community fees and taxes becomes the responsibility of the new owner. An owner does have to option to pay off the bond portion of the CDD for their property, thus reducing the amount owed yearly to only include the working capital needed to maintain the community.

Property Tax Homestead Exemption

Under the homestead exemption, all legal residents of Florida can deduct $25,000 from the assessed value of their primary residence. This essentially reduces the taxable value of the property, and reduces how much eligible Florida residents pay in property tax. Certain groups of homeowners, such as senior citizens, veterans, and the blind, may qualify for other exemptions.

The $25,000 homestead exemption is not granted automatically, however. To be eligible in any given year you must take possession of the homestead by December 31, and then apply for exemption no later than March 31 of the next year.

Since January 9, 2008, eligible Florida homeowners can gain a further $25,000 exemption under Amendment 1. This exemption is received automatically by any homeowner who applies and is approved for the original homestead exemption.

The second exemption is calculated as follows:

The first $25,000 value of the home is the original exemption.
The second $25,000 is fully taxable. This is necessary to allow Florida towns and cities where assessed property values are low to continue collecting the revenue they need to run local government.
The third $25,000 is the new Amendment 1 exemption. It is exempt from all taxes except for school tax. This allows schools to continue receiving the funding they need (if this third portion was totally exempt, schools wouldn’t receive enough funding for their schools).

The "Save Our Homes" Amendment

The Save our Homes (SOH) amendment prevents annual property assessments increasing more than 3% or the percentage increase in the Consumer Price Index (whichever is lower). This guarantees any homeowner who receives a homestead exemption that the assessed (taxable) value of their property will not increase more than 3% per year.

SOH protects existing Florida homeowners, but if you’re buying Florida property and you are not a Florida resident and it is not your primary residence, SOH won’t apply to your purchase. The assessed value cap is lifted automatically when the property changes hands. It is important for new home buyers to rely on the current market value and not on the previous owners tax assessment as it is likely that the home will have an artificially low assessed value, especially if it’s been owned by the same person for a number of years.

Once you buy a home, you can apply for homestead exemption, and receive automatic SOH protection once the exemption is approved for the next tax year.

What does that mean? If you buy your home prior to December 31, 2008, you will have the benefit of whatever the prior homestead status is for your bill that tax year. Once the new year begins and providing you have applied by March 31, your new Homestead exemptions will be reflected in the following November’s 2009 tax bill. Remember taxes are paid in arrears.

“Save Our Homes” Portability

Amendment 1 has also changed the way SOH works. Under Amendment 1, SOH protection now has “portability,” meaning you can transfer a portion of your SOH benefit to a new homestead, if you meet the qualifying criteria.

Under the old pre-Amendment 1 system, a homeowner who had lived in the same homestead for several years had a substantial property tax benefit, as their home’s assessed value was capped. However, while they would enjoy lower property taxes, they were also more or less trapped in that home, as moving to a new homestead would mean a sharp increase in property taxes (as they would not be protected by SOH).

Amendment 1 has changed that by allowing Florida homeowners who receive SOH protection to transfer that protection to a new homestead. They must, however, apply for SOH within two years of purchasing the new property to be eligible to transfer the accumulated tax benefit to the new home. For example, a homeowner who gave up their old homestead after January 1, 2007, would have to claim for their new homestead by March 3, 2008 to be eligible for SOH portability.

The protection isn’t limited only to people who purchase new property. A Florida homeowner with multiple properties can transfer homestead status and SOH protection from one property to the other. However, because these protections only apply to a primary residence, they must also be willing to change their primary residence. There are stiff penalties for claiming homestead status on a property that is not your primary residence.

To apply for SOH portability you must apply for a new homestead exemption and also make a separate application to transfer the SOH benefit to your new homestead. You’ll need DR-501T and DR-501R application forms, which you can obtain from the Florida Department of Revenue web site and turn in to office of the county appraiser where your new homestead is located.

How much can you transfer? It depends on whether you’re moving to a house of greater or lesser value than the house in which you currently live. If it a home of greater value, you can transfer up to $500,000 worth of SOH protection from your original homestead. If it’s less in value, you can transfer up to 50% of the new property’s value in SOH protection.

Stay with me here…

For example…

Your current homestead has a value of $300,000 and SOH exemption of $150,000.

If your new property has a value of $500,000 you’ll receive portable benefits of $150,000.

If your new property is valued at $200,000 you’ll receive $100,000 worth of protection (in this case 150,000 of 300,000 is 50% - so you would apply the 50% to the new property value to arrive at your dollar amount of reduction of assessed value).

Assessment Cap for Non-Homesteads

Under Amendment 1, there is now an assessment cap for non-homestead property. This applies a cap of 10% on the assessment of both residential and non-residential property.

As of January 1, 2008, all non-homestead property will be assessed at market value only. However, the assessed increase from year to year is capped at 10%. In addition, the assessed value of the property cannot exceed market value.

Essentially, this means the assessed value of non-homestead property will be equal to market value. If a non-homestead property is appraised at $350,000 in 2008, it will be tax assessed at $350,000. If the property is capped at 10% cap in 2009, its assessed value could not increase above $385,000, regardless of market performance.

Non-homestead property owners can apply for this assessment cap in 2009.

Tangible Personal Property Exemption

The fourth Amendment 1 change is a $25,000 tangible personal property exemption. To qualify, business owners must file a TPP return by April 1 in the year in which they wish to apply. If you file and your TPP is less than $25,000 in value, there’s no need to file again unless your TPP value increases over that amount. Tangible personal property includes any owned and leased items used by a business.

Calum MacKenzie is Broker/Owner of Real Living Southern Homes a leading Tampa real estate company serving the Wesley Chapel FL real estate and New Tampa FL real estate markets.

Get Ready for Florida Hurricane Season

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 29 May 2008 15:09:21 -0700

Hurricane season is fast approaching for those of us living in Florida. With it comes the risk of heavy winds and floods that can do plenty of damage to our homes. It’s time to dust off disaster supply kits and make sure they’re full of all the supplies you might need, and make sure your family knows what to do in the event of a hurricane.

Your Family Disaster Plan

A disaster plan is simply an action plan that you’ll carry out if a hazard affects your home and family. It includes preparation activities you do before the hazard becomes a threat, and activities you might need to carry out during a storm or other emergency.

Determine the types of hazards you might be affected by, and how your home is most vulnerable. Check out some ways in which you can minimize the risk of damage or safety threats during a storm.
Check your insurance and make sure you’re covered for flood damage in some way (standard homeowner’s insurance rarely covers floods).
Take classes in CPR, first aid, and disaster preparedness.
Locate rooms or areas in your home which are safe from hurricane hazards. Generally this will be an interior room which has no windows.
Determine escape routes from your home (these might vary depending on the hazard involved) and choose one or more meeting places where your family can gather if separated.
Plan what to do with your pets if you have to evacuate your home.
Choose a contact person—a friend or family member who lives out of state—that family members can contact if needed. Make sure you have at least two ways to contact that person (such as email, home phone, cell phone).
Create and maintain a disaster supply kit, and make sure your family knows where it is and what it’s for.
Check your disaster supply kit when a hurricane watch is issued and make sure you have all necessary supplies on hand.
Discuss all of these issues with your family to make sure everyone understands what to do during a storm.

Creating a Disaster Supply Kit

A disaster supply kit is full of all the things you might need in the event of a storm doing enough damage that you lose your electricity supply or become isolated from the rest of the world.

When creating and maintaining disaster supply kit, it’s important to make sure that everything that goes in the kit stays in it. Don’t be tempted to remove items from the kit for any reason—it’s far too easy to forget to replace them. (Of course, you can use your own discretion when deciding whether or not to buy items such as blankets, pillows, and clothing especially for the kit.)

What should you include?

Plenty of water—a good rule of thumb is one gallon per person per day, with at least three days’ worth for each person in the household.
Enough food for three to seven days. Include only non-perishable food such as canned or dehydrated items, and also add some plastic utensils and paper plates, as well as a can opener and cooking implements.
First aid kit
Toiletries and personal care items
Blankets and pillows
Clothing
Battery-operated flashlight and radio, and plenty of spare batteries
Books and toys for you and the kids
Important documents, including insurance policies, social security & bank account numbers, wedding and birth certificates. Keep these in a waterproof document sleeve.
Tools (battery or hand-operated)
Pet care items for any pets you own, including a leash and muzzle for dogs, and a cage or carrier for any small pets.

You may also want to have on hand items that you may need for emergency repairs if windows and other household fixtures are broken during a storm.

Some items, such as prescription medication and documents, won’t be a part of your disaster supply kit at all times, but you can gather these items when you hear of a hurricane watch and add them to the kit.

Store kit items in a safe and secure location, in water-tight boxes or bags, and make sure everyone in the family knows where your emergency supplies are located.

Some items may need to be replaced periodically even if you don’t use the kit—this includes batteries, and may include first aid and food items.

What should you do when a Hurricane Watch is Issued?

If a hurricane watch has been issued for your area, your actions will depend on whether or not you need to evacuate your home.

If you’re able to stay in your home, assemble your disaster supply kit and check for any items that need to be replaced. Stock up on any supplies you need, fill your car with gas, and grab some extra cash (in case ATMs and banks close). Carry out your pet plan, notify your contact person of the hurricane watch, and check up on your neighbors, too. If a hurricane does show up, gather your family in your home’s safe room, along with your disaster supply kit.

If you’ve been ordered to evacuate, or live in a vulnerable area, you’ll need to decide on a destination and inform family and friends (including your out-of-state contact) where you’re headed. Evacuate to the home of family members or friends in a safe area if possible, or try a motel or hotel in a safe location. Shelters will usually be a last resort, as these may be uncomfortable, and many don’t accept pets.

One of the worst feelings for family and friends is not being able to reach you and know that you are alright. Decide on one out of state contact and let your family and friends know ahead of time who that is and how to reach them.

Assemble your disaster supply kit, take care of your pets, grab extra cash, fill up your car’s tank, and secure your home. Before leaving, map out a route you’ll take to get to your destination—don’t get on the road until you know where you’re going and you have a safe route to get there. Be patient and leave as early as possible.

Calum MacKenzie is Broker/Owner of Real Living Southern Homes a leading Tampa Bay real estate company serving the Wesley Chapel FL real estate and New Tampa FL real estate markets.

Florida Home Inspections: Common Issues

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 29 May 2008 08:28:46 -0700

What’s the most important consideration when buying a home? Price, location, size? Most people won’t ordinarily think a home inspection is particularly crucial—it’s something that most of us do, but we don’t necessarily stop to consider just how important it is. The home inspection gives you a complete idea of what problems are present in the home, and what’s needed to fix them, so it is a vital part of buying a home.

There are certain problems that are commonly found in home inspections that, if left undetected, could mean thousands of dollars worth of repairs for an unwary home-buyer. In addition there are issues that are unique to states such as Florida, due to our distinctive climate. These are definitely worth paying attention to, particularly if you’re relocating from out of state and haven’t considered the problems that a warm, moist climate can present.

Water Damage

The Florida climate is absolutely brutal in terms of the damage it can do to wood and wood-based products. Regular maintenance of paint and caulking will eliminate 90% of the potential problems, but for many homeowners that maintenance just doesn’t get done.

Wooden doors without rain protection, siding in contact with grade, and poorly protected trim or siding are all vulnerable to water damage. Even stucco homes are vulnerable if stucco begins to crack and allow water access to the frame beneath. The damage done to wood framing on stucco homes can be huge, because the stucco hides what’s going on in the wood.

Application and regular maintenance of caulk and paint will prevent these issues (or help prevent them worsening if the home you buy is affected by water damage). Alternatively, consider whether you’d be better off with a masonry-built home with aluminum, stucco, and other materials in place of wood siding, framing, and trim.

Electrical Issues

Electrical problems are often caused simply by aging, damaged wiring, but that’s not the biggest problem your home inspection might uncover. More problematic than an older wiring system is the damage that a homeowner can do if they hire a non-licensed electrician, or even worse, do the work themselves without prior experience or knowledge.

Common issues found in these situations include exposed wiring without the necessary conduit protection, outlets with reversed polarity, junction boxes left open in attics or behind walls, double-tapped circuits, unsafe exterior wiring, and badly-constructed GFI outlets. Often, such issues arise when a homeowner decides to remodel their kitchen or bathroom, but fail to check out current code requirements. The result is that the modifications may not be up to code (this is more likely for older homes, as electrical codes have changed significantly in the past couple of decades).

Plumbing Problems

Plumbing issues such as leaky faucets, water heaters, shower stalls, or toilets are common, but usually fixed fairly easily. A more significant problem occurs in the long term when water intrudes behind tiles, and shower or tub surrounds. These can be more costly to fix.

All these problems are easily avoided by sealing grout lines with grout or caulk, and repeating the application as needed. These simple measures can save thousands in unnecessary repairs and prevent the mold problems that often result, too.

Aging, Damaged, or Leaky Roofs

Florida’s climate and weather isn’t particularly friendly to roofing materials. Materials such as metal panels and concrete tiles will tolerate the weather as long as they’re installed properly and conform to manufacturer’s requirements. Shingles, however, are almost guaranteed to start taking damage soon after installation.

Harsh winds are part of the problem, but the main culprit is actually the hot Florida sun. In general, a shingle roof will last around fifteen years (even if it has a 20, 30, or even 40 year rating).

Roof failures are usually on the perimeters of the roof, or anywhere where the roof is penetrated, such as around chimneys, plumbing vents, or attic vents.

Air Conditioning Problems

Air conditioning issues might not be a big deal in all states, but people in Florida use their AC systems ten months out of the year—more than anywhere else in the country. Despite the fact that so many people rely on their AC so heavily, they don’t often get regular maintenance. In fact, the number one reason that AC systems experience problems is simply poor maintenance, rather than a mechanical failure.

Home inspections usually find leaking ductwork, dirty air handling coils or filters, and low refrigerant levels, any of which can lead to an inefficient, badly-running AC system. Changing filters regularly, plus annual servicing will keep your AC running well for a long time to come.

Problems in Low-traffic Areas

Those are the top five, but those aren’t the only issues a home inspector is likely to come across. Home inspectors don’t just take a tour of the most frequently-used areas of your home—they’ll want to look at attics, crawlspaces, and other hard-to-reach places that often get overlooked when it comes to maintenance. These unused places are all prime locations for termite and pest damage, water damage, plumbing, insulation, or electrical defects, structural damage, and HVAC problems.

Calum MacKenzie is Broker/Owner of Real Living Southern Homes a leading Tampa real estate company serving the Wesley Chapel real estate and New Tampa real estate markets.

Florida Homeowner's Insurance: Top Ten Ways to Save

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 01 May 2008 22:07:58 -0700

Homeowner’s insurance may soon be increasing for Florida residents—and even more for those living in the southern part of the state. This is the ideal time to check your policy and your home to see if you can cut your costs and make up for the rates hike.

Your Policy

1. One of the simplest ways to decrease your insurance premiums is to increase your deductible. This is true of most types of insurance, but few pay off as much as increasing the deductible on your home. Increase it to $2,500 and you could save hundreds of dollars every year.

2. If you’re looking at getting a new policy, ignore the new trend for online insurance shopping. In locations that are subject to special weather conditions, there called hurricanes in Florida, it’s always best to shop locally. Work with a local agent who deals with multiple carriers, and you’ll benefit by having an agent who does the shopping for you and can help you choose the best deal from among several carriers.

3. Choose an A-rated, admitted carrier. An A-rated carrier is more likely to remain financially stable in tough times, and an admitted carrier has state-approved rates and is covered by Florida’s Guarantee Fund. Both of these factors mean more security for your policy.

4. Ask your agent about their carrier’s renewal processing process, and find out if they requote the policy each year. Choose an agent that does requote every time renewal comes up to make sure you always have the best coverage at the best price.

Your Home

5. If your Florida home was built before 2002, having it surveyed for wind mitigation factors could save you hundreds of dollars every year. This kind of survey documents design features in your home—such as FBC shingles and reinforced garage doors—that help it resist damage in high winds. In most cases you’ll save enough in the first year alone to cover the cost of the survey.

6. Storm damage is a big factor in Florida insurance rates, and one way in which you can keep your rates low is by owning a home with a hip roof rather than a gable roof. This type of roof diverts wind better than a gable roof does, and puts less strain on the house during high winds.

7. Make sure your home is within five miles of a fire station, and within 1,000 feet of a fire hydrant. If it’s too far away from either of these things, you may have to buy your insurance from Citizens, Florida’s state run insurance carrier, and means paying top dollar. As in the case of the hip roof, this tip might not help if you already own a home and plan to stay there long-term. However, if you’re looking to relocate it’s something to keep in mind.

8. Have your alarm system monitored. Overall you might not save money, but it more or less allows you to improve your home’s security for free, or close to it, as the amount you save on your insurance will typically cover the cost of having your alarm monitored.

9. If you have a diving board, a trampoline, or a dog of a dangerous breed, you’ll pay dearly for it with your insurance carrier. You may even find that conventional carriers aren’t interested in insuring you, and that means getting insurance from Citizens. You may not want to give up a much-loved family pet, but there’s no harm in questioning how much you really need a diving board.

10. Owning a property of five or more acres increases your insurance costs. In most cases you’ll need to buy a policy from a specialized carrier, which naturally costs more. However, if you don’t mind reducing your property a little, you can sell off an acre or two and reduce your premiums at the same time—reduce your land parcel to four acres or less and you’ll be able to shop around and reduce your costs.

Calum MacKenzie is a Tampa real estate agent with Real Living Southern Homes located Wesley Chapel, Florida. Visit Tampa Homes 24/7 to search the Tampa MLS.

Florida Property Insurance Changes will Affect Most Homeowners

Calum MacKenzie (Tampa Homes 24-7 LLC) — Sun, 13 Apr 2008 18:19:17 -0700

In the wake of Hurricane Katrina and other destructive storms, getting affordable property insurance hasn't been easy. Many private insurers shed high risk clients after storms in 2004-2005, and raised assessments for others. For those who could no longer afford private insurance (or who were declared uninsurable by private insurers), state insurer Citizens Property Insurance Corp is the last resort.

Over the last year, the state has been attempting to keep property insurance rates low for those who are insured with CPIC. According to critics of the latest property insurance changes, however, Florida residents who are insured by private companies will end up paying more so that the rates can stay low for those insured by the state-owned company. The last week of March saw the Florida Senate approve some changes to property insurance that might end up increasing property insurance rates by around 3%.

The bill was backed by Chief Financial Officer Alex Sink and approved by the Senate Banking and Insurance Committee. The intended effect is to reduce Florida's Hurricane Catastrophe Fund by $3 billion. This means the state can reduce its investment in CPIC and therefore reduce its risk.

At the same time, however, the state has also voted to freeze CPIC insurance rates through to the end of 2009. CPIC insures more than 1.3 Florida residents, and the rate freeze that occurred last year was done to avoid an increase that could have seen rates up by as much as 29%.

The problem is, according to critics, that CPIC's premiums aren't high enough, and that the company won't have enough cash reserves to be able to pay out claims if a major storm hits.

This is why the $3 billion reduction in the Hurricane Catastrophe Fund is significant. The Catastrophe Fund is a sort of safety net that can kick into action when Florida is hit by a major hurricane, and is intended to reimburse private insurers a portion of the money they pay out in claims. However, with the fund now reduced by $3 billion, the deficit is likely to be made up by rate increases for homeowners.

Last year, the state actually increased the Catastrophe Fund by $12 billion, but this year has been reduced by $3 billion. The fund was increased last year to reduce costs for insurers, and indirectly for homeowners. However, by increasing the Catastrophe Fund, the state of Florida was also increasing its own level of risk.

The state now wants to start decreasing its investment in the fund to reduce its risk. The net effect, however, will likely be the opposite of that which it originally intended. With private insurers taking on more risk relative to last year, the end result is more than likely going to be increased property insurance rates. The estimate is around 3% overall, with a slightly higher increase possible for Southern Florida residents.

Chief Financial Officer Alex Sink admits that an increase in rates is possible, but also says that if insurers try to increase rates to an unreasonable level, the state will step in.

Calum MacKenzie is the Broker/Owner of Real Living Southern Homes a residential real estate brokerage located in Wesley Chapel, Florida and serving the Tampa Florida real estate and Land O’ Lakes real estate markets.

USDA Guaranteed Residential Loans Available to Some Florida Residents

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 20 Mar 2008 22:09:18 -0700

How many residents of Florida (or anywhere else in the country, for that matter!) know that the United States Department of Agriculture backs a guaranteed home loan program that allows rural residents to qualify for home loans if they’re unable to do so by conventional means? And how many residents of New Tampa, Wesley Chapel, and Land O’ Lakes know that this loan is available in these locations?

Most people who do know about the USDA loan program think that it’s strictly limited to highly rural areas, but in fact, it’s available in many locations that are commonly thought of as much more suburban. Programs such as these aren’t often well-known to the general public, but given that this one’s available in Land O’ Lakes, New Tampa, and Wesley Chapel it’s definitely in your best interests to learn more about it if you are interested in living in one of those areas. The USDA guaranteed home loan program is a fantastic opportunity that makes it easier for moderate income families to afford their own home.

Main Benefits to Homeowners

Moderate income families living in these Florida locations can really benefit from this program. The main benefit is that you don’t need a down payment, and in fact this is one of the major intentions of the program. The idea is that families who could otherwise afford the mortgage, but who don’t have a large enough down payment, can get into their own home without having to wait and save more. The loans offered by the program are thirty year fixed rate mortgages that provide the following benefits:

Credit score requirements are more flexible
No predetermined maximum loan amount (loan amount based on income criteria, your repayment ability, and the home’s value)
No need for a down payment
You can include the cost of home improvements and repairs in the loan
No restrictions on lender
No need to purchase monthly mortgage insurance (so your mortgage repayments will cost a little less each month)
No limit on gifted funds
The loan is guaranteed

Eligibility Criteria

To be eligible for one of these USDA home loans, you must meet the following criteria:

The property needs to be in an eligible location
Be purchasing residential property
Must not already own a home in the local area (the exception is if your existing home is either functionally inadequate or structurally unsound)
Be unable to qualify for conventional financing (this doesn’t include FHA or VA)
Be a US citizen
Have the legal capacity to receive a loan
Intend to occupy the new home permanently (meaning it can’t be a second home or vacation home)

Credit and Financial Requirements

There are some financial and credit requirements, too. First of all, applicants with a credit score higher than 660 are preferred. You can still apply if your score is lower than that, however. If your score is lower than 620, there are some additional qualifying criteria. You can not have:

Undergone bankruptcy discharge or foreclosure within the past 36 months.
Been more than 30 days late on consumer debts, had any accounts converted to collections, any outstanding judgments, or two or more late rent payments, within the past 12 months.
Tax liens or delinquent government debts (student loans are included).
Any outstanding collection amounts.

There are also some income limits, and some requirements that focus on your ability to repay the loan. To qualify, your income must be within 115% of the US median income. There are some deductions available, including costs of daycare and care costs for elderly family members and other dependents.

In addition, your monthly house payment, taxes, and insurance total should be less than or equal to 29% of your gross monthly income. Your total monthly debt, including any other debts as well as the house-related debts, should be equal to or less than 41% of your gross monthly income.

For homes built after January 2001, this ratio can be expanded to 31%-43%.

What can you do with a USDA Home Loan?

The loan can be used for a pretty wide-ranging set of reasons. There aren’t too many restrictions on what type of residential property you can fund, as long as you meet all the other eligibility criteria. With the USDA home loan, you can:

Buy/build a new home
Buy an existing home
Buy an existing home and make improvements
Refinance your existing guaranteed rural housing loan
Buy a condominium (however, it must be “mature” rather than of new construction)
Buy a manufactured home (in this case, it must be brand new, and be bought directly from an approved dealer or contractor)
Cover the costs of legal feels, title services, establishment of an escrow account, and loan closing costs. Note, however, that there’s no cash back at closing and the loan can only be used to pay housing-related debts.

Calum MacKenzie is Owner of Real Living Southern Homes a leading residential real estate brokerage located within Seven Oaks in Wesley Chapel, Florida and also serving the Tampa real estate and Land O’ Lakes real estate markets.

Florida’s Amendment 1 – What It Means to You

Calum MacKenzie (Tampa Homes 24-7 LLC) — Tue, 11 Mar 2008 19:04:30 -0700

On January 29, voters spoke loud and clear. Amendment 1 passed with nearly 65% of the vote - an astounding percentage. With the passage of Amendment 1, many people will be seeing some major changes in their tax bills. Are you one of them? Here's quick rundown on the four sections of Amendment 1, what each section is, and how it might apply to you.

Part 1: Portability

The first part of Amendment 1 allows those who received a homestead exemption to transfer their Save Our Homes benefit to a new home under certain conditions. Under the old system, many people were "trapped" in their homes - unable to move because a move would mean a drastic increase in their taxes. The large increase in tax was due to the yearly 3% cap that a homesteaded property is privy to. So if property values increased more than 3% every year, a homesteaded property's assessed value capped out at 3%. You can see that a homeowner that has resided in a home for a number of years would see a substantial tax benefit by means of a lower assessed value. Under the old plan, each time you purchased a new home, you lost any accumulated tax benefit from your old home and the assessed value reset to the market value of your new home.

Under the new amendment, you get to take your accumulated tax benefit with you as long as you apply it to another homestead within two years. A seller that had homestead exemption in 2007, and who either sold or abandoned their homestead in 2007 will be eligible to take their Save Our Homes benefit with them if they move to a new home in 2008 and apply for homestead portability. From 2008 onward, you can take your Save Our Homes benefit with you as long as you transfer it within the same year or the following year.

In order to receive this benefit, you must apply by March 1, 2008 to your property appraiser for your new homestead exemption and for the transfer of the "Save Our Homes" benefit to your new homestead for 2008.

In order to take advantage of portability, you have to make two separate applications - one for your new homestead exemption, and one to transfer the Save Our Homes benefit for 2008. You'll find the application forms DR-501T and DR-501R on the Florida Department of Revenue website.

Here's a quick FAQ regarding portability:

1. How much is the portability benefit worth?
You can transfer up to $500,000 of portability benefit to a new homestead. If your new homestead is worth more than your old one, you transfer the dollar amount. If your new homestead is worth less than your hold one, you transfer the percentage. For instance: your current homestead is assessed at $300,000, but under Save Our Homes, $150,000 of that is exempt. If you move to a new home that is assessed at $500,000, your portability benefit will be $150,000. If you move to a new homestead that is assessed at $200,000, your portability benefit will be 50%, or $100,000.

2. Is the change of homestead and transfer of Save Our Homes automatic?
No. You need to apply for each benefit separately.

3. How do I apply for portability?
You simply turn in a completed application form to the office of the county appraiser in the county in which your new homestead is located.

4. Does portability only apply if I buy a new home?
No. If you already own a second property, you can transfer your homestead exemption to one property to the other and transfer the Save Our Homes benefit as well. Make note that your Homesteaded property must be your primary residence.

5.Am I eligible for portability this year?
If you filed to give up your old homestead after January 1, 2007 and are claiming a new homestead for 2008, you're eligible, but you have to file your application for portability by March 3, 2008.

Part 2: Additional $25,000 Homestead Exemption

The second part of Amendment 1 is an additional $25,000 homestead exemption. The exemption is available to anyone who is already claiming the original $25,000 exemption. In order to claim it, you don't have to do anything. It will automatically be applied to your 2008 tax assessment. In Hillsborough County, the average savings will be $250-300 per household. This is how it will be calculated:

First 25,000 of value - exempted from taxes
Second 25,000 of value - fully taxable
Third 25,000 of value - exempted from all taxes except the school taxes

Why isn't the second 25,000 of value exempt? It is designed to protect cities and towns within Florida that may have many lower assessed property values, particularly in more rural areas. If the exception applied to the second 25,000 of value, many of these cities and towns would not collect enough revenue to run their local governments.

Why does the second 25,000 exemption still allow for the schools taxes to be collected? Simple answer is that the revenue is needed to fund our schools.

Part 3: Tangible Personal Property Exemption

According to the DOR:
Tangible personal property is all goods, chattels, and other articles of value. It includes: machinery, equipment, furniture, fixtures, signs, window air conditioners, supplies, leased, loaned, borrowed, or rented equipment used in a business, mobile home attachments on rented land (carport, screened porch, Florida room, etc.) furniture and appliances in rental properties.

The third part of Amendment 1 is a $25,000 exemption on all tangible personal property. Business owners must complete the TPP return and file it by April 1 each year. If it's determined that your total tangible personal property is less than $25,000, you won't have to file again. The first $25,000 of tangible personal property is exempt from taxation under Amendment 1.

Part 4: 10% Non-Homestead Assessment CAP

The final part of the amendment is a 10% limitation on assessment of non-Homestead property, both residential and non-residential. As of January 1, 2008, state law requires that all non-homestead property be assessed at just market value, and be reassessed annually, but the change resulting from the reassessment can not exceed 10% of the current assessed value, and the assessed value can not exceed the market value. In 2009, owners of non-homestead property will be able to apply for the 10% non-homestead assessment CAP.

In practical terms, that means that as of January 1, 2008, the assessed value of your non-homestead property will be equal to its market value. If your property is appraised at $350,000, it will be assessed at $350,000 for tax purposes. In 2009, if you apply for the 10% CAP, the property assessment can not be any higher than $385,000 - 10% above this year's assessed value - no matter how much the market value increases. If the market value of the property is less than that, then the assessed value can be no higher than the market value.

You'll find any forms needed to apply for the various exemptions at the DOR web site or at your county appraiser's web site.

Calum MacKenzie is the Owner of Real Living Southern Homes a residential real estate brokerage located in Wesley Chapel, Florida and also serving the New Tampa and Land O’ Lakes real estate markets.

It's the Right Time for the First Time

Calum MacKenzie (Tampa Homes 24-7 LLC) — Fri, 08 Feb 2008 13:17:03 -0800

It might be the single most common question a realtor hears - is this a good time to buy a house? While the answer depends on your personal circumstances, there are certainly times and circumstances that make "yes!" the right answer for most people. If you're a first time home buyer, this is one of those times. What's bad news for home sellers has created an excellent market for anyone who is in the market for a home.

But I keep hearing the housing market is falling apart. How can that be a good time to buy?

Different market conditions favor different kinds of buyers. Over the past several years, the housing market in Florida has been perfect for investors - people who were looking to buy low, sell high and get out quick. Property prices skyrocketed, and investors pushed the market higher and higher. Developers looking to cash in on the rising market bought up land and put up new houses to add to the existing supply of housing. Eventually, the market hit its limit - with so many houses on the market and prices so high, something had to give, and it did. Investors and developers who didn't sell soon enough found that their properties wouldn't sell at the high prices they were asking, and housing prices started coming down.

What's bad for "investors" is good for buyers.

So what you're hearing out there about the housing market falling apart is true - if you're an investor looking to flip houses or make a quick profit. If, however, you're in the market for a home and are intending to live in it for more than a few years, this is your ideal market. Here's why:

Housing prices have fallen from their incredible highs just a few years ago. If you've been waiting for lower home prices, you've got them now. The biggest question is how much further prices will fall - and with various agencies stepping in to shore up the housing market, the answer is probably not too much further.

The supply of homes for sale is enormous, and includes a wide variety of home types. No matter what type of home you're looking for right now, you'll find a lot of choices out there. From town houses and condominiums to single family homes in new and older developments, you've got lots of choices to choose from.

The government has stepped in to encourage people to buy with lower interest rates on mortgages. Right now, mortgage rates are lower than they have been in some time, especially on fixed rate mortgages.

Sellers are eager to sell. That means that many of them are offering all sorts of concessions to close a deal. You may find sellers willing to assume all closing costs, help with down payments or throw in your first few month’s mortgage payments to sweeten the deal and get you to close.

Is it a good time for YOU to buy your first home?
Of course, you need to take your personal circumstances into account when deciding if this is the right time for you to buy your first home. Some of the considerations that should weigh into your decision include:

Your family circumstances - many couples decide to buy because they're ready to start a family, for instance. Is it emotionally time for you to buy a home?
Your financial circumstances are important, too. Is your income stable? Can you afford a monthly mortgage payment, insurance and taxes?
Are you planning to stay put for more than five years? Conventional real estate wisdom is that housing prices rise over the course of time. In most cases, a family that stays in their home for five (some say seven) years will see their home's value increase.

Assistance for First Time Home Buyers
If everything else is in place for you to buy your first home, but the closing costs and down payment are holding you back, there are a number of programs on the state, federal and county level that are designed to help first time home buyers get into that first home. Depending on the program, you may be eligible for down payment assistance, low interest loans, foreclosure protection, education and assistance with closing costs. Most are aimed at low-income families, but the definition of low-income varies from program to program.

Do you qualify for first time home buyer's assistance? The qualifications vary slightly from program to program, but the list below (from Floridahousing.org) is typical. You qualify for the first time homebuyer program if you:

have never owned a home,

don't claim their mobile home as real property,

haven't owned and occupied a home as their primary residence within the past three years,

have established credit worthiness, and

have an annual income that does not exceed program limits.

Programs that Offer First Time Home Buyer Assistance
The most well known first time home buyer assistance programs are managed by two federal agencies, Fannie Mae and Freddie Mac. Each of them sponsor housing assistance programs for different purposes.

Fannie Mae's MyCommunity Mortgages
MyCommunity mortgages are available to help buy or refinance single family homes, condominiums and two-to-four family homes that you will live in as your primary residence. The program is designed for people who may have little to or no savings available for a down payment, and don't have a traditional credit history to show that they handle credit responsibly. Credit can be established through a history of paying rent and utilities or any other payments that you make on a regular basis. The program will also consider "non-traditional" income such as income from boarders or government benefits.

Freddie Mac's Home Possible Mortgages
Freddie Mac underwrites loans for low and moderate income home buyers, including first time home buyers. The programs sponsored by Freddie Mac help first time home buyers overcome some of the most common barriers to home ownership, including impaired credit, no down payment or lack of savings for closing costs. Freddie Mac's Home Possible initiative offers a number of different mortgages through many lenders in Florida designed for special circumstances. They include 100% loans, low interest fixed rate loans, down payment assistance and home buyer education.

Florida First Time Home Buyer Program's
In Florida and locally, the City of Tampa, and Hillsborough and Pasco County each offer home buyer assistance programs sponsored by HUD. Each program can offer assistance with down payments and closing costs, homeowner education and low interest fixed rate mortgages for qualified home buyers. The income qualifications are spread over very low, low, medium and moderate income families, with levels of assistance dependent on where on the income scale you fall.

If you've been putting off buying your first home because you were waiting for the time to be right, the time is right now.

Calum MacKenzie is Owner of Real Living Southern Homes a residential real estate brokerage located in Wesley Chapel, Florida and also serving the Tampa real estate and Land O’ Lakes FL real estate markets.

What the Mortgage Forgiveness Debt Relief Act Means For You

Calum MacKenzie (Tampa Homes 24-7 LLC) — Fri, 08 Feb 2008 13:16:22 -0800

On December 20, President Bush signed a law that is meant to help homeowners who are facing foreclosure or who sell their homes in a short sale. Before this law, the Mortgage Forgiveness Debt Relief Act of 2007, if your bank or lender forgave a portion of your mortgage debt because the value of your home had decreased, the IRS treated the forgiveness as taxable income.

That meant that if your mortgage lender forgave $15,000 in mortgage debt because your house was worth $15,000 less than your remaining mortgage balance, the IRS treated it as earned income. When you filed your taxes, you were required to add that amount to your annual income and pay taxes on it at your regular tax rate. Just when you most needed a break, you ended up owing taxes on $15,000 in phantom income.

Not for the next three years. Under the Mortgage Forgiveness Debt Relief Act, taxpayers can exclude up to $2 million of forgiven mortgage debt on their principal residence in 2007, 2008 or 2009. If you're married filing separately, you can exclude up to $1 million in forgiven debt from your income.

What is mortgage forgiveness?
Mortgage forgiveness is a term that has become more familiar in the real estate market over the past couple of years. In essence, anytime that a lender accepts less than the full amount of the debt owed in full payment of a mortgage, the difference between the amount owed and the amount accepted is "forgiven".

Let's take a look at Sue and Jim. They took advantage of a great adjustable rate mortgage to buy a home for $350,000 four years ago. The payments were manageable until the adjustable rate did what adjustable rates do - and thanks to the changes in the housing market and the sub-prime lending market, they are now facing foreclosure. To make things even worse, the best offer that they can get on the home for which they paid $350,000 is $275,000. Although they still owe $330,000 on the mortgage, their lender agrees to accept the $275,000 as full payment of the remainder of the mortgage, forgiving $55,000 of the debt.

Under the Old Rules The IRS Gets Their Cut
When a bank or other mortgage lender forgives your loan or any part of it, they send you a 1099C in the amount of the debt forgiven. You are then required to count the amount on the 1099C as taxable income along with your earned income and wages. Sue and Jim from the paragraph above would have got a 1099C from their old lender. When they file their taxes for the year, that $55,000 would be added to their earned income, adding the insult of having to pay taxes on income they never saw. Instead of relief, they'd end up owing the IRS a hefty chunk of change at the next tax term.

The Mortgage Forgiveness Debt Relief Act Changes Everything
Well, not exactly everything. If you're forced into a short sale, you'll still get a 1009C from your lender, and you'll still have to file that with your taxes. Now, however, you're allowed to exclude the forgiven amount up to $2 million ($1 million if you're married, filing separately) from your taxable income. In other words, while it's still counted as income, you won't have to pay taxes on that amount of your income.

Who Qualifies for the Mortgage Forgiveness Debt Relief Exclusion?
According to the IRS, you'll qualify for this tax exclusion whether you mortgage debt is forgiven as part of a refinancing or if it's forgiven in connection with a foreclosure. In order to qualify for the exclusion, the following conditions must apply:

The debt forgiven must be on a mortgage for your principal residence. The principal residence is qualified based on the amount of time that you lived in it over the past five years.
The mortgage forgiveness must be because of loss of value in your home or because of a forced short sale in connection with a mortgage foreclosure. A forgiveness that is given in return for services performed for the lender is not allowed.
The debt must be forgiven between January 1, 2007 and January 1, 2010.
The debt forgiveness must be on the mortgage used to buy your home.

How to Claim the Debt Relief Exclusion
In order to claim the debt relief exclusion, you'll need to show the IRS how much of the debt has been forgiven. That will require some calculation on your part, because the IRS wants to see the fair market value of your home as well as the amount of your mortgage that was forgiven. Often, when the lender makes out the 1099C or 1099A, they may just put the value of the loan in the field that's reserved fair market value of the home. In some cases, the 1099C or 1099A may not include the fair market value at all.

Like your math teacher, the IRS wants to see your work. When you submit your taxes, you'll need to include documentation of the fair market value of the home as well as your calculations. If the fair market value of your home - the price that it was sold for - is not listed on the 1099C form, you may do best to hire an appraiser to document the fair market value.

The calculations can get complex if you've taken out home equity loans or a second mortgage on your home as well as the primary mortgage. In this case, special considerations may apply. For instance, the income exclusion only qualifies for "acquisition indebtedness"- money that's spent to buy your home, build a new home or that you use to make substantial improvements to your home.

Suppose you bought a house 10 years ago and paid $80,000 for it with a 100% loan. The Florida land boom was very good to you, and five years later your home had increased in value to $200,000. You took advantage of lower interest rates to do a cash-out refinance for $150,000, paid off the remainder of the original mortgage and pocketed $70,000. When time comes to sell, though, you can only get $100,000 for the property and your lender agrees to a short sale because the home has decreased in value, forgiving $50,000 of the loan amount. Can you use the Mortgage Forgiveness Debt Relief Exclusion to avoid taxes on the $50,000?

That depends, says the IRS, on what you did with the cash-out part of the loan refinance. If you used the money from the refi to pay college tuition or your daughter's wedding, then you'll have to pay taxes on the forgiven amount. If, on the other hand, you used it to make major improvements to your home, then it qualifies for the exclusion - but you'd better be able to prove the expenditures. If you're audited, you may need to provide your original warranty deed, or your HUD-1 form. You may need to show canceled checks, receipts and invoices to show the cost of improvements you made.

Filing For the Debt Forgiveness Exemption
The new law came at the end of the year, after the tax forms for this year had been printed, so you won't find anywhere on the tax forms to make the calculations you'll need to prove you qualify for the exemption. The IRS is suggesting that those who are facing a short sale or foreclosure this year use electronic tax preparation software. The private software companies have worked hard to update their own forms so that you can do all the necessary calculations within the software, then print out the results so that you can attach them to your completed tax return.

Calum MacKenzie is Owner of Real Living Southern Homes a residential real estate brokerage located in Wesley Chapel, Florida and also serving the Tampa real estate and Land O' Lakes FL real estate markets.

Seeking Florida Information???

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 31 Jan 2008 11:24:14 -0800

Governor Charlie Crist is very interested in keeping the public informed. He is very concerned about Florida's residents' awareness of government policies, current events, and legislature. Thus, the Governor has chartered the creation of a new website: http://www.floridaperforms.com/, which will host a variety of news issues, useful links, and pertinent information regarding the current state of affairs.

Through the site, Crist hopes that Florida's residents will better understand the issues and resolutions of the political ring, and feel free to comment about their wants and needs. Florida Performs will hopefully connect the public and the government in an effective and successful way, while maintaining a professional and informative status.

Governor Crist feels strongly about the state acting as one sole entity when it comes to resolving the issues that greatly affect all of Florida's families and residents. He is also open to receiving e-mails personally to hear your thoughts and views on this new site. You can contact Governor Charlie Crist at: Charlie.Christ@MyFlorida.com.

If you are seeking information on the status of the Tampa Real Estate Market, click on Tampa Bay.

You Can Live Anywhere, Why Choose Tampa Bay?

Calum MacKenzie (Tampa Homes 24-7 LLC) — Wed, 30 Jan 2008 14:51:13 -0800

With all of the negative media surrounding the current real estate market, and more specifically, the Florida market, I thought it would be a great idea to remind everyone about the many reasons why Tampa Bay is still, without a doubt, a great place to call home.

When you think of a city that offers it all, you may think of New York, LA, or perhaps Chicago. What may surprise you is that Florida's own mini-metropolis lies in Tampa Bay. Tampa has a history of all its own, and truly offers every element someone would consider if relocating: a large real estate market, dynamite shopping and dining, culture and arts, close proximity to the beaches, an international airport, an up and coming downtown, and many very different suburbs to choose from. So why choose Tampa Bay? The answer's easy: Why not?

Tampa Bay has a beautiful climate and a beautiful people. The area is well-diverse, offering more culture-centered events than a lot of cities, and housing a lot of tradition as well. The annual Gasparilla Pirate Invasion and Parade is reminiscent of the original pirates of the 1800's invading the coast of Tampa Bay and is hosted every January on beautiful Bayshore Blvd, which could arguably be titled, "Tampa's Dream House Row". Soon after the parade is over, our own Florida State Fair resides on the fairgrounds right in the heart of Tampa. People drive from surrounding towns and cities to enjoy the rides and calories of fair food! After that, St. Patrick's Day, Cinco de Mayo, and the Forth of July all have a huge presence in Tampa, and are recognized by all nationalities.

The area also brings in many out-of-towners during Spring Break, Memorial Day, and Labor Day. With so much to offer, Tampa Bay really has quite a tourist market. As mentioned before, both St. Petersburg and Clearwater beaches are just a short drive away, and if you're willing to go a bit further, beautiful St. Armand's Circle in Sarasota, or the infamous Walt Disney World in Kissimmee aren't much farther. But we can't forget our own gems: Busch Gardens, one of the largest amusement parks in the country is centered in Tampa, as well as the established Lowry Park Zoo. The Channel District downtown is growing, and is home to The Florida Aquarium, which inhabits millions of different species of marine-life and freshwater animals. If you're looking for fun for free, simply take a trip to our own Hillsborough River, which runs throughout the region, provides the city of Tampa with its drinking water, and truly offers rustic and virtually untouched views of the city. There are several outdoor facilities and State Parks to visit and explore. Tampa's own Cigar City, more commonly known as Ybor City, is a gaslight district close to downtown that was created by the strong Hispanic culture of Tampa and offers a great look at the history of the Bay. Ybor has shopping, dining, and even tours of the old cigar factories for visitors to truly engulf themselves in the miniature city.

Located in the heart of downtown Tampa is the Tampa Bay Performing Arts Center, which is the largest Performing Arts Center south of the Kennedy Center in our nation's capital, as well as the largest non-profit organization in Tampa. Otherwise known by our residents at TBPAC, the Center offers amazing, talented shows, right off of Broadway: Phantom of the Opera, Avenue Q, and Jersey Boys, just to name a few. Besides these well-known shows, TBPAC offers smaller, independent shows for the likes of any entertainment junkie. The Center has without a doubt instilled the love of performing arts in the residents of Tampa Bay.

Tampa Bay has a diverse and huge school system, which is ran through Hillsborough County and offers some of the best academic and athletics programs in Central Florida. The city is also home to the University of South Florida and the University of Tampa, which are both highly accredited universities with a variety of academic programs to choose from. You can also feel very safe in Tampa Bay, as we are home to Tampa General Hospital, which is one of the top trauma centers in the nation, as well as H. Lee Moffitt Cancer Center, which is one of the top oncology research centers in the U.S.. There are also many other well-respected hospitals in Tampa Bay, which are spread deliberately throughout the city to ensure that every resident has safety and well-being nearby.

Tampa Bay truly is a destination for families and singles alike. With its diverse population and literally something-for-everyone offerings, the city welcomes everyone and anyone with open arms. With its prime location, close to the coast, but also close to all of Florida's other major cities, Tampa really is in the heart of it all, and is a city that may not be completely well-known as of yet, but will soon be a force to be reckoned with.

For more great information check out our Tampa Real Estate Website.

Calum MacKenzie is Broker/Owner of Real Living Southern Homes, a leading residential real estate brokerage serving the New Tampa Real Estate and Wesley Chapel real estate markets.

Gorgeous Pebble Creek Home in the Heart of New Tampa!

Calum MacKenzie (Tampa Homes 24-7 LLC) — Tue, 22 Jan 2008 11:28:13 -0800

Huge Reduction! This fantastic Pebble Creek home is way under market value, the owner says to SELL QUICK!!! Think of what a great investment this could be! This home offers much more than any other in its newly reduced price range: huge conservation lot, enclosed pool, great curb appeal, updated granite baths, modern stainless appliances and gorgeous kitchen, side-entry garage, and the list goes on! The owners have spared no expense in keeping this 2,038 sq ft, three bed/two bath home updated and well-maintained. Built in 1996, in the NO CDD golf course community of Pebble Creek, this home is sure to win you over with its great open floorplan and killer price! The neighborhood offers a community pool and rec room, basketball and tennis courts, two playgrounds, and a full eighteen-hole golf course and clubhouse with beautiful nature views. Become a New Tampa resident for a non-New Tampa price... this gorgeous home is sure to make you proud!

Check out Pebble Creek Homes for more information on the community, or go to Tampa Home Search for home listings for the entire Tampa Bay area.

Counseling and Hope for Sub Prime Mortgage Holders

Calum MacKenzie (Tampa Homes 24-7 LLC) — Fri, 18 Jan 2008 15:41:00 -0800

You may think that holders of a sub prime mortgage need more than just counseling - true! But there is a new program out which includes counseling as part of its scheme to help distressed borrowers.

The counseling is intended to help people to hold onto their homes after they have been accepted for refinancing through a new scheme.

The scheme called 'Hopenow' has been given the blessing of two of the big boys in Government: the United States Department of Treasury and the Unite States Department of Housing and Urban Affairs.

It is to Hopenow's credit that they are offering counseling, it is at least recognition of the fact that, though this may be a national crisis, to every one who is struggling to pay the monthly mortgage, it is simply an individual crisis.

If you are one of these people, take the trouble and afford the expense to send your application for consideration by recorded delivery, special mail or registered post. So far 45,000 applications have been taken, and you may want to show that you have in fact, tried to access this help. You will need proof.

Refinanced mortgages with fixed rates are available now for homeowners struggling with sub-prime mortgages. Knowing that these mortgage holders could face even more increases in their mortgages in the next two years, action is being taken now.

At the moment Hopenow are looking at the most serious cases, as their mandate is to avoid as many foreclosures as possible.

This means that when you write to them, you need to state your case clearly, and do not feel shy about writing out your worst financial problems and the amount of money that you will lose, and how many children you have that will be homeless.

Enlist the help of your sub prime mortgage lender (he or she does not want you to lose this property, as undoubtedly they will lose some of their cash too, if you go under.) Your sub prime mortgage lender may even know of a way to help put you near the top of the 'help' list.

In some cases the help can come in the form of an interest rate freeze, rather than a complete change in mortgage plan, but this freeze will serve to tide mortgage holders over until they can re-finance without the panic of foreclosure over their heads.

Hopenow has been created by lenders in the mortgage services field who represent 90% of the sub prime market. There are at least 2milllion sub prime mortgage holders. This outreach program often contacts lenders before they get to foreclosures and offer to help them. They do have a website that you can visit.

This help is a blessing for the nation as well as the individual people in distress; once the foreclosure problem is faced and dealt with by a system that has Government backing, the property market will not have a glut and prices will be re-established.

This article was written on behalf of Tampa real estate agent, Calum MacKenzie. Calum is a professional who makes client satisfaction his top priority. Calum has the expertise needed to help find your dream home in the Land O' Lakes Florida real estate market.

How Walkable is Your Neighborhood?

Calum MacKenzie (Tampa Homes 24-7 LLC) — Mon, 03 Dec 2007 16:01:29 -0800

Though not everyone wants a home in the center of town, there's a really clear set of home buyers looking for vibrant communities where they can walk or bike to most places they want to visit. Being able to get to the store, walk your kids to school, get to work and even go out for dinner on a Friday night - all without a car - now tops the list of what's desirable in a neighborhood for these people.

As it turns out, neighborhoods with a deliberate mix of residential and commercial properties, public green space and community centers are packed with more than just people. With so many nearby destinations they also encourage healthy living. According to a report published in the Journal of American Planning, more walk ability equals less waistline. The report shows that when a neighborhood's walk ability increases by just 5%, the neighbors' body mass index decreases by .23%. The study echoes the results of numerous studies showing clear links between health and neighborhood design. Less driving, reduced impact on the environment, more social interaction, increased connection with neighbors and a stronger local economy are other perks.

Though the term is becoming increasingly popular, walkable communities aren't new. The old town village was a walkable community. The world's biggest metropolitan centers started out as small, walkable communities long before the invention of the car. These cities were natural places for people to settle, build their homes, businesses, schools and town halls - close together.

GET YOUR WALK SCORE

There's been such an increased interest in the concept of walkable communities in fact, that a Seattle company has just launched a website where users can plug in an address and get the "walk score" for that neighborhood. The application is based on information found in Google Maps and though it has it's flaws, is a great tool for home buyers doing a home search outside their region.

The site will generate a walk score for any address that can be found in Google Maps from Tampa to Juneau. The results tend to be fairly accurate, but the generated walk score sometimes trips over the things that Google doesn't know about a neighborhood. Criteria that affect walk ability like weather, crime, hills, trees, rivers and public transit are not taken into account by the Walk Score site. Yet.

One visitor to the site suggests that the application's short comings can be compensated for by "the Web 3.0 app called going outside and investigating the world for yourself." Very funny, but when you're looking for a home in Tampa while you live in Minnesota, this kind of firsthand information isn't possible. What is possible, however, is to use the Walk Score results as a springboard for dealing with your Realtor. Your Realtor makes it their business to know the neighborhoods they serve. If they also have a good understanding of the importance of walk ability to your home search - you're well on your way to finding the right home in the right neighborhood, whether it's in the next state or on the other side of the country.

Calum MacKenzie is Tampa Bay Real Estate agent who centers his business on personalized service. Visit www.tampahomes24-7.com to see homes for sale in Tampa Bay and start your home search right now.

Get Green for Going Green

Calum MacKenzie (Tampa Homes 24-7 LLC) — Sat, 24 Nov 2007 11:18:13 -0800

While some conservation measures are so inexpensive that anyone can do them, others are considerably more costly. They'll all save you money in the long run, but the initial costs for things like installing photovoltaic energy or solar water heating can seem a bit daunting. Lucky for all of us, you don't have to do it alone. The state and federal governments have target dates to reach specific goals in conservation - and they're willing to pay out a bit of green to get you to go green by their deadlines.

On the federal level, there are tax credits and tax exclusions for home owners who upgrade their current heating, cooling and power systems to more energy efficient ones. You can get up to 30% of your initial costs back for installing solar power cells, for instance, and up to 10% of your costs for building improvements that make your home more energy efficient. Check the incentives available at DSIRE, the Database of State Incentives for Renewables and Efficiency.

While you're there, click on your own state to find out about incentvies being offered by your state for going green. These credits and rebates vary by state, but energy state offers at least one energy efficiency rebate.

In addition, check your county web site or call your local county and municipal government to find out what rebates may be offered locally. The city of Oveido, for instance, is considering offering up to $1000 to homeowners who replace their water guzzling lawns with local landscape plants that use far less water.

Finally, don't forget to check with your local utility companies to find out what you can get if you upgrade your range, clothes dryer, water heater, pool heater or many other appliances with more efficient ones. We're all in this together, so it's really nice to know that there are agencies and organizations out there that will help you go green.

More living green ideas and tips.

Doing Your 'Green' Bit

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 15 Nov 2007 18:48:16 -0800

Some states in USA are encouraging their residents to 'think green' and offering education on this subject. Perhaps the most forward thinking of these states was Florida, who pioneered such thoughts in the early 1990s.

Because of the diminishing land fill area, Florida brought in their first solid waste laws in 1994. At that time, each County was required to reduce the amount of its disposed solid waste by 30%. The people of Florida were taught how to re-cycle and compost. Leaflets were printed on how to build your own composting bin and shop-keepers were forced to add one penny onto any cans, bottles and jars they sold.

One reason that the residents were converted early was because Florida's soil is particularly permeable due to the high water table. Suddenly cutting down your garbage volume by 30% is a tall order! But it is one that we could all put into practice. One of the easy ways to cut down the amount of solid waste to be disposed of, is to compost it.

The University of Florida published a pamphlet called 'Construction of Home Compost Units', back in 1991. In Florida, residents are allowed to participate in 'backyard composting' but large scale operations needs permits.

However, if you are just composting from your own kitchen scraps, and your compost will be used again in your own yard, there are no rules to meet.

Composting has probably been practiced since the beginning of time, and some of the methods of composting are quite sophisticated. However, many of us can remember our Grandmas using a simple method.

Each day, the vegetable cuttings and kitchen waste went into a bucket, and at the end of the day they went onto a pile in the garden, which was covered with a tarp. Each week this was covered in leaves (preferably a dry mix of leaves) or straw, or paper and topped with a sprinkle of lime and soil and a liter or so of water, (if the leaves are all soggy, skip the water.) Then the procedure was repeated the next week.

After two or three weeks it was mixed up and tossed into a bin to 'heat up'. This heating up process often produces steam, but it is all part of the transformation of your garbage! It changes from moldy food into rich compost, ready for your vegetables and flowers next year. .

If your area starts cutting down on your garbage volume, this is one way you can cope. The world is running short of topsoil, so you really will be doing your 'green' bit!

This article was written on behalf of Calum MacKenzie. If you want a speedy response to your search for property in the Tampa area, including waterfront and lake front communities such as Land o Lakes, call on Calum and Kathleen MacKenzie. They are familiar with all Tampa real estate

Choosing a Green Builder for Your Dream Home

Calum MacKenzie (Tampa Homes 24-7 LLC) — Wed, 07 Nov 2007 07:36:31 -0800

The choices that you make in building your dream home can have a big effect on the environment, and on your future energy use and costs. When you first start learning about the different aspects that go into green building, it can seem overwhelming. Luckily, you don't really have to know all those things yourself.

One of the most important choices that you can make is your choice of builder. Take the time to interview several different builders when you're in the market for a brand new home to learn about their green building experience and policies. Just a little education on your part will help you gauge just how knowledgeable and committed your builder is to following green building practices.

In addition, you can turn to other sources. Many area builders voluntarily participate in green home certification programs, or are associated with the Florida Green Building Coalition. Here are a few handy resources that you can use to help you choose a builder that considers the environment and your family's health when building your home.

FGBC List of Certified Homes

Green Home Standard from FGBC

National Geographic's Green Guide Homes Section

Find an Energy Rater to rate the energy efficiency of your home or plans

Green Building Basics

Building your home with sustainable resources is one of the best and biggest ways that you and your family can contribute to the preservation of our planet. When you choose to build green, you'll be investing in the future of us all - and saving more than just money.

For more info on building green check out Why Build Green from the Start?

For more ogreen living tips check out Living Green.

5 Green Renovations Tips

Calum MacKenzie (Tampa Homes 24-7 LLC) — Mon, 29 Oct 2007 21:11:28 -0700

The perfect time to make big green changes in your home is when you're renovating anyway. Are you planning new appliances, roof or heating system? Adding insulation? Upgrading your water delivery system? It's an ideal time to look for the greenest alternatives possible. Here are some tips on going greener when you're renovating your home.

Do it now. If you install new energy efficient windows, HVAC, doors, insulation and a number of other upgrades before December 31, 2007, you could be eligible for a up to $500 in tax credit. More information on which renovations and improvements are eligible can be found here.

Look for the Energy Star. If you're buying new appliances for your kitchen, a new heating or cooling system, new windows or nearly any other home improvement, look for the Energy Star. The joint program between the Environmental Protection Agency and the Department of Energy awards the Energy Star to products that meet or exceed strict guidelines of energy efficiency.

Start with an energy audit. You can have an energy audit done by a professional, or do one yourself. If you're not certain of which improvements would be best for your home, the Energy Star website has a great energy audit that will make recommendations based on information that you enter. All you need is some basic info about your home and your last 12 months of utility bills.

Think inside and out. Don't limit your green thinking to your house. There are many changes you can make outside that will make a big difference in the amount of natural resources that you use. You can landscape with native plants to reduce the need to water plants, or take advantage of landscape planning to provide windbreaks and natural shade which will reduce your energy use and provide shelter from winds. Learn more about green landscaping at Energymatch.com.

If you're renovating in Florida check out Suggestions for Green Renovation from Florida Green Building Coalition.

Yes, You Can Afford to Go Green

Calum MacKenzie (Tampa Homes 24-7 LLC) — Fri, 26 Oct 2007 21:29:44 -0700

It's hard to dispute the evidence that the way we live has a very real effect on the Earth. With the world's population expected to reach 7 billion - that's a 7 with nine zeros - by 2011, we are rapidly outgrowing the capacity of the Earth to support us in the style to which we are accustomed. If we don't make some changes in the way we consume the Earth's resources, it won't be a question of affordability. We really can't afford NOT to start making changes that reduce the impact of our daily lives on the planet we call home.

On the other hand, most of us aren't in a position to run right out and buy a new hybrid car, or replace all the windows in our house with the latest, most energy efficient models. For most of us, it doesn't make financial sense to tear out our old heating and cooling system and replace it with totally green energy sources. In fact, most of us couldn't do it even if we had the money - there just aren't enough green energy providers out there yet. But that doesn't mean that there aren't things you can't do right now and every day to reduce your impact on the environment. Even better, none of these things are hugely expensive, and nearly all of them will actually cost you less money than continuing to do things the way you do them now. You'll find a list of suggestions for living a greener life at Tampa real estate blog.

The Immovable Stink: How Smoking Can Reduce Your Property Value

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 25 Oct 2007 17:05:34 -0700

Smoking cigarettes used to be a symbol of sophistication and style. Classic black and white films featured glamorous movie stars enveloped in a dreamy haze of smoke, which created an aura of mystery and seduction. Now that we know about the health risks involved, world opinion has turned on this past time, and smoking bans are popping up in restaurants and bars around the nation. Despite the dangers, many people still choose to light up. For some, it is a pleasant way to unwind at the end of the day, while for others it is a raging addiction that can't be controlled.

While smoking is certainly bad for your health, it can also be a drain on your property value. The smell and the stains penetrate every surface, and are very tough to get rid of. Buyers don't want to live with your tobacco fumes, and will either nix your house completely, or take thousands of your asking price.

Smoking inside is a terrible, yet totally preventable mistake that homeowners make. The smell of cigarette smoke is not only present for an hour or two after you light up, but affixes itself to the furniture, carpets, and walls. Ceilings are also vulnerable, as the smoke rises and is absorbed in the paint and wood. This odor is unmistakable, and no matter how many cans of air freshener you use, the stench refuses to leave.

If you plan on selling your home, the first thing you need to do is attack the smell head on, and get rid of it as much as possible before potential buyers walk through the door. If they enter the property and are hit with the remnants of cigarettes, chances are very good that they will immediately take your home off their radar. No one wants to move into a stinky house, especially one in which the smell is so toxic and hard to remove.

To reduce the odor, you need to air the rooms out. Keep windows open as much as possible, and get all upholstery, window coverings, and rugs steam cleaned. Anything made of fabric needs to be washed thoroughly, or else the scent will return.

Smells and stains also stick to hard surfaces like cupboards and walls. Traditional cleaners including ammonia or bleach can help to some degree, but the results are often temporary. Take Agnes' situation, for instance. When she bought her current home, she knew that the previous owner was a smoker, but thought that a little ammonia and a lot of elbow grease would solve the problem. Five years later, Agnes can still clearly smell cigarettes on her kitchen cupboards. No amount of cleaning has made the residue of old tobacco budge.

For hard surfaces like walls, the most effective method is to clean the area with Tri-Sodium Phosphate, which is a heavy duty cleaner. After cleaning, apply a thick primer, which prevents stains and smells from seeping through. Once you've cleaned and primed, you can go ahead and paint. Whatever you do, don't simply paint the walls without cleaning and priming first. Otherwise you'll end up with ugly yellow stains that emerge right after the paint is dry. The odor also returns with a vengeance.

After fabrics, walls, and ceilings have been taken care of, look for little things like light bulbs and paintings, which absorb scents as well. Clean everything, down to the smallest detail! To sweeten the room, you can burn scented candles, or spray perfume on the light bulbs. When they heat up, the aroma will fill the room.

One other word of caution: if you have every smoked in the bathroom, you will need to scrub everything with TSP. Steam can release cigarette smoke that has been lying dormant in grout and walls. Your buyers will not be impressed if every time they take a hot bath, they're assaulted with the stench of tobacco. They may even try to come after you legally for creating a potential health hazard in the home.

No one wants to deal with the aftermath that comes with years of smoking in a home, especially prospective buyers. If you haven't been able to remove the odor, then be prepared to knock a fair amount off of your asking price. Otherwise, you will be hard pressed to find buyers interested in taking on your home.

Calum MacKenzie is a professional Tampa Florida real estate agent, who makes client satisfaction his top priority. Calum has the expertise needed to find you your dream home in the Wesley Chapel real estate market.

Feng Shui for New Homes

Calum MacKenzie (Tampa Homes 24-7 LLC) — Wed, 17 Oct 2007 17:03:55 -0700

Sometimes you step into a house and something just doesn’t feel “right”. If you’re looking for a new home, you’ve probably had the experience. The house is in the right neighborhood. It’s visually appealing. It has the right number of rooms, the right amount of floor space – and best of all, it’s comfortably within your price range. But something about it just doesn’t feel right.

Feng shui experts offer many explanations for that “unrightness” – and something even better. If you can identify what it is about the house that feels wrong, feng shui offers many cures to make a home feel happier and more comfortable. Still, most feng shui experts suggest that you look for feng shui problems before you buy so you don’t buy yourself trouble. Here’s a quick checklist of feng shui “faults” that you can apply to the properties you look at.

Outside the House

Avoid houses that are at the end of a dead end street, especially if they face the oncoming road. Also avoid houses that are opposite a T-intersection or at a Y junction. In short, you don’t want to live where cars will be pointed at your living room all day long.
Select a home with an uphill slope at the rear. Failing a hill in your back yard, you can look for a tall building behind your house, a hedge or line of trees or a wall.
Avoid houses with obstructions in a direct line with your front door.
Avoid houses that are visibly smaller or “dominated” by buildings on either side of them.
Avoid homes that are close to houses of worship, funeral homes, cemeteries, hospital, police station, waste treatment and other public utility plants.
Curved walkways, paths and driveways are good luck.

Inside the House

Your front and back doors should not be in a straight line with each other.
Overhead and exposed beams can make a house feel crowded. Ceilings that are too high encourage chi to flee.
You shouldn’t be able to see the kitchen from the front door.
You shouldn’t be able to see the toilet/bathroom from the front door.
Avoid long dark hallways – or find ways to brighten them.
Bedrooms should not be located over empty space.

Tee-Up to Golf Course Living in Tampa

Calum MacKenzie (Tampa Homes 24-7 LLC) — Thu, 11 Oct 2007 17:12:11 -0700

If you are looking for affordable luxury living in a setting that will take your breath away, look no further; it is time you explored golf course community living in Tampa.

Enjoy a laid back lifestyle where your day might begin with a stroll to the clubhouse for breakfast, maybe playing a round of golf, and after lunch, head over to the rec center for a leisurely swim or sauna. Experience the resort in a lush setting, impeccably planned to take advantage of the natural beauty in the area.

Many golf communities are situated within a reasonable distance to larger centers, which provide a large variety of restaurants, shopping, schools, medical facilities and easy access to many cultural activities, museums and entertainment. You can relax at night, as most of these neighborhoods are gated with 24 hour security.

You don't have to be a golfer to enjoy this type of life, but if you are, you are in for a treat. The Tampa/St. Petersburg/Clearwater area, alone, has almost 2,700 holes of golf to choose from, in the event you get bored playing the courses within your community.

Other recreational facilities are readily available and depending on the area may include swimming, tennis, volleyball, basketball courts, hiking and biking trails and horseback riding. If you're a boater or a beach lover, rest assured as many of these resorts are located on or near Tampa's beaches and marinas.

Here are some of Tampa's foremost golf communities:

Tampa Palms - With close to 7,000 acres, Tampa Palms is the largest golf community in New Tampa. It also contains a multitude of recreational facilities, miles of walking and biking trails and has easy access to schools and I-75.

For the golf lovers, this community boasts the prestigious Tampa Palms Golf and country Club, along with its Arthur Hills designed golf course.

Purchase prices range from high $100,000's upward to the millions for an estate in The Reserve. The average price in 2005 for a single family home was $452,550.

Hunter's Green - This community is comprised of more than 1,000 acres and contains one of the area's top golf courses. Although it is private, as a resident you are not required to join the club. With miles of walking trails and parks, the area has a very private feel, but it is close to I-75 as well as local schools.

Purchase prices range from mid $100,000's to over $1 million.

Heritage Isles - This is a unique area, in that a public course is actually woven throughout the community. It has a well-equipped Clubhouse along with a pool, typhoon water slide, children's area, lap pool, sand volleyball court, roller blade rink, basketball and tennis courts. Who could be bored living here?

Heritage Isles has easy access to I-75 and I-4 as well as Hillsborough County Schools.

Purchase prices range from $100,000's to the high $700,000's for a home right on the golf course.

Check here for more information on other Tampa golf course communities or browse all of the Tampa Real estate listings.

Building Your Credit Score and Saving for a Down Payment

Calum MacKenzie (Tampa Homes 24-7 LLC) — Mon, 01 Oct 2007 21:56:05 -0700

With the current state of the mortgage industry, it's going to be paramount for home buyers to have a great credit score and a healthy down payment. To that end, I just completed a series of articles on my Tampa Real Estate Blog on how to improve and build your credit score and save for a down payment.

Article one, The Credit Fixer Upper - 6 Ways to Improve Your Credit Score, goes into detail on how to get a free copy of your credit report, correct errors on your report, lower your debt ratios, negotiate with creditors, pay down credit card balances, and warns of companies that promise to fix your credit.

Article two, Keeping Your Credit Score Healthy and Fit, tells you how to build a quality credit score with tips keeping credit card balances low, keeping good records, paying your bills on time, using credit wisely, and more.

The third and final article, Saving for a Down Payment, is great for first time home buyers trying to come up with the first down payment. The article provides advice on setting a budget, trimming expenses, using automatic transfers, along with additional sources for down payment.

Greening your Florida Garden

Calum MacKenzie (Tampa Homes 24-7 LLC) — Wed, 26 Sep 2007 14:53:29 -0700

While some people move to Florida dreaming of the sea and sand, I do hear the occasional sigh from relocating gardeners who aren't sure what to plant in our lovely climate. In fact, Florida's nursery and landscape business is second only to California, so you'll find plenty of fellow planters here who love to talk shrubs. And with a climate like ours, every excuse to be outside is a good one. Not only is gardening a great way to relax, studies have shown that landscaping can actually speed the sale of your home by up to six weeks. Grooming your property can also increase your resale value by a whopping 14 per cent. Social scientists claim that plants are the quickest and cheapest way to improve the atmosphere of an area. With arguments like that, what's not to like?

In addition to the financial benefits, gardening is good for you! Weeding can burn up to 300 calories an hour and plants improve the air quality. Plants also reduce water pollution by filtering pollutants carried by rain, and reduce soil erosion along shorelines and streams.

These days, people are recognizing how they can adapt their yards in little ways that will take less effort to maintain and benefit the environment at the same time. There are many ways to beautify your yard while keeping the work load lighter – instead of choosing lawn as the predominant feature in your yard consider using it only in areas where it serves a function. Minimizing the size of your lawn not only cuts down on water usage, it saves you all those hours behind the lawn mower.

Choose mulched beds with drought resistant plants instead of grass. Adding mulch to your yard is beneficial for a number of reasons: not only does it suppress weeds; it also helps the soil retain moisture and prevents erosion. In order to help prevent disease, mulch should end about two inches from the base of your plants. If you are set on having a green, lawn-like look, there are other green covers that require less water and less work than grass- Perennial peanut is a nice example.

Not all plants are suitable to our area: invasive plants are destructive to Florida's natural environment - they rob local plants of food water and nutrients. The Florida Nursery, Growers & Landscape Association has compiled a list of plants that shouldn't be used. The same association designates "Plants of the Year" - plants that have proven themselves in our inviting climate, many of which are drought resistant and can tolerate neglect (perfect for a first time gardener). These may serve as helpful guidelines for Florida newbies - ask at your local nursery or check online for more information. The many choices of native and Florida-friendly plants that do well in our climate require fewer fertilizers to maintain (with an added bonus of fewer pollutants).

Also be careful with pesticides - by choosing less-toxic options and spot-treating your yard, you will allow beneficial insects be more effective and minimize your family's exposure to chemicals. This will also protect any wildlife visitors you may have. To increase bird and butterfly visits, make your yard wildlife friendly - aim for plants that provide food, shelter and nesting areas. In addition to creating a safe haven for winged visitor, bird houses can be a pretty addition to your space. You may also want to consider a pond or bird bath as a water source.

Before you go to shop for plants take a look at where you plan to set your garden. Taking note of the conditions specific to that area will be useful when choosing plants: what is the soil like? How much sun and water does the site receive? Choosing plants suitable to the conditions will save you time and money (and secure your status as a successful Floridian gardener!).

With a little foresight your hobby can transform your home and neighborhood, while helping you relax in the Florida sun. After all, isn't that the point?

Calum and Kathy MacKenzie are professional Tampa Realtors® who want to make your relocation easier. For more information on Tampa real estate check out Calum and Kathy's web site at www.tampahomes24-7.com.

On Vacation Forever with a Second Home in Florida

Calum MacKenzie (Tampa Homes 24-7 LLC) — Wed, 26 Sep 2007 14:52:27 -0700

So you've come to Florida for a vacation, and somewhere between the surf, the sky and the sand you've decided you want to stay – at least for part of the year. All dreaming aside, there are many practical reasons to purchase a second home: you may be looking for a rental income, a way to diversify for investments, a personal retreat or a familiar vacation spot.

With the year-round sunshine and stunning views, it's no shock that Florida is such a popular spot to call home. It may surprise you to know, however, that we're in a buyer's market, which means you have more options. Home sales have dropped considerably since last year and the available inventory keeps growing. This is too bad for the speculator, but it's great news for buyers. You can relax, take your time and watch prices: there may be more room for negotiation. If you want to flip a property, it won’t be as easy, but if you're buying for investment then you know that the market goes up and down. Get in now and the value will increase.

The first thing to do is get your finances in order. If you have equity built in your home you may be able to borrow money against it to pay the down payment on a second home, but it's important to consider monetary issues aside from simple financing. Will you be renting your second home when you aren't there? You may want to talk to an accountant - depending on how much time you stay in your second home and how often it is rented out your taxes and deductions will differ. Ask yourself if you can afford the property taxes and remember that you may have to pay capital gains tax if you sell the property down the line. Think about the annual cost of upkeep: calculate the utilities, association fees, garbage collection costs, etc. Also, make sure you qualify for the insurance you need.

If you are thinking of renting your second home you should check with property management companies in the area. While they can't predict the future, they should be able to give you a good idea of the local market - how often are properties rented, for how long, and for how much?

Be sure to check the out the neighborhood. This is less important if you are familiar with the area, but if you've come on your first vacation and fallen in love you should take some time to get practical. You wouldn't marry someone after the first date would you? Make sure your neighborhood meets your day-to-day needs. If you’re a latte hound you want ensure find a coffee shop within a suitable distance - the last thing you want to do on your next holiday is spend a half hour commuting to the nearest Starbucks. Checking out other necessities, like local health care facilities, is also a good idea, especially if you are thinking of spending your retirement in this location.

With all the practicalities aside, the reality of your permanent vacation spot in the Sunshine State can begin. Once you visit it's hard to leave!

Calum and Kathy MacKenzie are professional Tampa Realtors® who are dedicated to providing personalized, effective service. For help with finding your ideal Tampa home or selling in the buyer's market, visit the MacKenzies online at www.tampahomes24-7.com.