I have been reading several articles on how a Biden tax plan benefits Florida real estate market. Biden’s tax plan has many parts to it, some of which benefit Florida homeowners and some of which hurt. As I am writing this article neither candidate has been declared the winner, and we will not go into that for purposes of this article. We are simply passing along information should Biden eventually be declared the winner.
One article suggests the Biden tax plan benefits Florida real estate market by creating an incentive for residents to leave high tax states more than they already have. Biden’s tax plan could create a marginal tax rate exceeding 60% in New Jersey, California, Hawaii, and New York. As these states suffer shortfalls, they will be under more pressure to raise rates even higher. It is a vicious cycle. Many high tax states are hemorrhaging residents. As they lose residents, they must either cut spending or raise more taxes on the fewer that are left.
Vulnerable States Losing Residents
Another article mentions Illinois and California as particularly vulnerable. Biden’s tax plan calls for an increase in capital gains rates as well as several new taxes. One such tax is raising the amount many earners pay on social security. Another tax is capping deductions for some earners, as well as raising the top income tax rate from 37% to 39.6%
When you factor all these new taxes in, the theory is people will flee high tax states and move to lower tax states where their income is taxed less by the state. It is not much theory as we have already seen it the past 4 years. The writers of these articles speculate it will intensify and speed up.
At this time, we still do not know who will control the Senate and how those votes will go. All we know is that if Biden wins the election, there will be upward pressure. Some of these taxes will hurt real estate, and yet the Florida real estate market could still be a net winner in that we may gain more people interested in Florida than we lose in tax penalties. The same cannot be said for other states, but we focus on the SW Florida real estate market.
Target Marketing High Tax States
In 2020 the Ellis Team has sold many properties to buyers from high tax states. In fact, we have several looking right now and making offers. Our marketing has focused on those areas and we expect that to continue. When our team lists a home, we advertise it where we think the buyers are.
We have many local buyers and even more out of state buyers. If you get lucky out of state buyers come to you based on brand, reputation, or referral. If you are an aggressive agent you go find the buyers through advertising, and that is what we have done. We do get a lot of referrals from out of state agents. Many agents calls us because of the Keller Williams name. We appreciate all of that and that is why we are at the company we are with.
What is particularly fun is selecting certain markets you believe contain buyers who might move to SW Florida and combine that with our artificial intelligence that shows us where buyers are coming from and take out ads directed at those buyers. When the leads start to flow in off those ads it feels a lot like finding a good fishing hole nobody else knows about. Never ask a fisherman where their best fishing hole is and expect a straight answer. Conversely, never ask a top agent who is using this advanced technology to locate buyers to tell you exactly where they are coming from.
Never Ask a Fisherman
A fisherman might tell you which lake the fish are in, but never the exact spot. A top agent might tell you which states buyers are coming from, but not the exact formula to advertise to them.
If you have a home to sell, always call Brett or Sande at the Ellis Team 239-489-4042 Ext 4. We have buyers and can help you get Top Dollar. We do not know who the next president is yet, but we do know how to sell your home either way. Or visit www.SWFLhomevalues.com for an instant and Free valuation.