2-18-2015: News Flash: “Canada buys most of United States“
6-26-2013: Headaches from foreign investors means higher prices for investors buying properties (i.e., more competition drives up distressed property values), but other home sellers enjoy the rising prices as will the local taxing authorities (licking their chops) from the (a) increased values and (b) absence of providing homestead exemptions and therefore higher property taxes. Source: http://www.foxbusiness.com/personal-finance/2013/06/26/foreign-investors-eyeing-us-real-estate-what-it-means-for-buyers/
Recent new of major hedge fund investors like Blackrock, Chinese and Australian investors, and others rapidly gobbling up foreclosures may be some good news to local municipalities with respect to property tax collections.
Two benefits for local municipalities in Florida, Arizona and other states where foreign investors have swooped in to capture real estate is the increased property taxes by (1) inability of investors to claim any homestead exemptions and (2) collection of property taxes in arrears at foreclosure sales.
Just heard on Bloomberg radio yesterday that 90% of international buyers of real estate in Miami are paying cash and alot of depressed priced properties are being purchased.
Usually, primary resident homes are eligible for several homestead exemptions (or reductions in property taxes) including a relatively large discount on taxes for older residents. However, if foreigners buy real estate, they may be ineligible to apply for those exemptions. But the lower US property taxes, compared with other countries, is still a deal.
4-5-2013: Some cities that are not experiencing the recovery or slow real estate market recovery are not receiving the property tax revenues to finance their budgets quick enough since there’s a general lag time of rising values, taxation and collections- http://economictimes.indiatimes.com/news/international-business/rising-real-estate-tide-not-lifting-us-cities-revenues/articleshow/19386982.cms
A side question I have is: “Do the rules for foreign ownership specifically exclude foreign residents from using normal and age related homestead exemptions, some of which may result in a 67% reduction of property taxes?” It all depends – if the rules are not clear, and it’s the only property the foreigner owns in the US, would they still be eligible to claim the homestead exemption? How would they prove if they lived there >6 months otherwise to claim residence?
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