The most noteworthy observation of the past several weeks is the resurgence of the Ultra-Luxury Market (properties listed for $3+ Million) here in Sarasota. I’ll share a few numbers to illustrate:
- In almost the first half of 2019 (January 1 – June 15) there were 33 sales in the Ultra-Luxury Market. And 288 sales in the Luxury Market (over $1M) segment overall.
- During the same period in 2020 (January 1 – June 15) there are 22 pending sales and 30 closings in the Ultra-Luxury Market (properties listed for $3M or more). There have been a total of 310 closings in the Luxury Market Segment during this time. This is an increase of more than 7.5% from the same period a year ago.
It’s No Longer Just About Sarasota’s Natural Beauty, Culture and Climate
Why is this occurring? Historically I would have said that it’s the weather, water, beaches, and the great culture we have here. However, this time I think there are a lot more financial implications at play.
There’s a lot of global volatility throughout the world. States, counties, and municipalities have greater expenses and far fewer revenues. Tax revenues are down as people are spending less, so governments are looking to find any extra money that they can. People wanting to keep more money in their pockets are moving here and establishing residency because there are significant financial advantages.
The State of Florida has protections in place for your assets including:
- There is NO state income tax — zero, zilch, none.
- There is NO estate tax here in Florida.
- There are TWO great homestead protections in the form of a reduction against the assessed value of your property used in tax calculations, and a cap on what the assessed value can increase.
- There are multiple asset protection benefits, such as Homestead Creditor Protection, as well as Tenants in the Entirety for spouses.
These amount to huge savings and protection benefits. Don’t be left behind if you are an imminent buyer or property seller as the luxury market continues to surge forward.
If you’re looking for a seasoned real estate professional reach out to Lee @ 941.587.0740.
