Top Investor Says Florida Property Market Will Soon Peak And Correct
Jeff Greene, Real Estate Billionaire, who owns approximately $2 billion in real estate, most of it in the sunshine state, stated earlier this week that while the Florida real estate market has benefited greatly from the pandemic, he believes that sky-high property values will soon peak. Greene emphasized that Florida saw a huge migration of people during the pandemic, which dramatically drove up demand and housing costs. He stated, “prices have gone higher than anyone could have imagined,” but believes that they will soon hit their peak. As fall comes around, Greene believes most of those who fled to Florida for the low taxes, warm weather and abundant outdoor activities during the pandemic will likely begin returning home to their own states. Greene says this “cooling off effect” will cause prices to moderate, and its effects will extend far beyond Palm Beach, to the majority of the state, as all markets are connected to some degree.
Florida Real Estate Market Benefitted From the Pandemic
Some of the most expensive real estate purchases made in Florida during the pandemic include an $80 million North Palm Beach mega-mansion, sold to Larry Ellison, and a $120 million newly completed mansion in Palm Beach. Overall, homes in Florida have seen an average 8% increase in appreciation during the pandemic, although the average is much higher in certain areas. The most interesting market shift may have occurred in Miami. Prior to the pandemic, nearly half of Miami real estate sales were made to foreigners. However, during the pandemic, the number of foreign buyers dropped to practically none. Traditionally, a shift from a foreign-dominated buyer market to a completely domestic market would precipitate a decrease in sales, however, this was not the case. In fact, the market has done the exact opposite.
How a Lawyer Can Help with Your West Palm Beach Real Estate Deal
When you are investing in a home or property, it’s important to retain a lawyer to ensure that your investment is sound and help you avoid common problems. For instance, signing an insufficient brokerage agreement without making necessary revisions to ensure that all legal issues are addressed; revising and personalizing the purchase agreement; defining and clarifying any vague or ambiguous terms in the contracts or agreements; conducting a title search; drafting and preparation of the deed and closing papers.
Sellers also benefit from working with a lawyer. One significant benefit is the consideration of tax consequences for the seller. If the seller is making a large profit on the property, the income taxes on the sale may be massive. An attorney can assess your unique financial situation to determine the best course of action, for instance, applying relevant tax provisions and excluding capital gains when possible to minimize the financial impact and maximize your investment profits.
Schedule a Consultation
If you are considering buying or selling property, the Law Offices of Larry E. Bray are prepared to help you maximize and protect your investment every step of the way. Call West Palm Beach real estate attorney Larry E. Bray and schedule your free consultation today.