Florida residents who are thinking about buying a home should not do so merely for the tax breaks. This is because recent changes to the tax code may reduce a homeowner's ability to lower his or her overall liability. For instance, it is necessary to itemize deductions on a return to write off mortgage interest and real estate taxes. Since the standard deduction went up, people may receive the same benefit whether or not they claim these expenses.
For Florida investors in commercial properties, 2017 was generally a good year. However, 2018 may not be so rosy according to a report by the Mortgage Bankers Association. Slower growth with net operating income and increased interest rates are among the factors cited for the group's conclusions. Solid income returns on real estate-related commercial investments are still expected, just not as much as what has been seen in recent years. Researchers also don't think property values will increase at the same pace.
Home sales in Florida and throughout the country are expected to climb 3 percent in 2018, according to a projection from the May 2018 Outlook Report produced by Freddie Mac. This is despite the fact that home prices are surging, interest rates continue to rise and inventory levels remain low. By the end of 2018, the average interest rate on a 30-year fixed-rate mortgage will be 4.9 percent.
Floridians who want to purchase homes but are not U.S. citizens might not realize that they could still be eligible for mortgages. The type of mortgages for which they're eligible will depend on their immigration statuses, however.