Luxury home sales in South Florida have been booming, while they have been slowing down everywhere else in the nation. One of the main reasons for the influx of Florida luxury home sales is wealthy homebuyers seeking tax relief. South Florida has attracted movers from the Northeast en masse, as Florida is one of only seven states in the US with no income tax.
The Tax Cuts and Jobs Act that was passed in December of 2017 had greatly reduced the degree to which taxpayers could deduct from their federal returns, imposing a $10,000 limit on city and state deductibility.
With so many high-income residents of New Jersey, Maryland, New York, Connecticut, and West Virginia fleeing state income taxes that can reach as high as 8.97 percent, luxury real estate prices in Florida have risen significantly. The second quarter of 2018 saw a 16-percent increase in prices for luxury properties compared to 2017.
South Florida is attracting high-income homebuyers nationwide, and the effect can be seen in the development and sales of many luxury estates throughout South Florida’s “Gold Coast” of Boca Raton, Delray Beach, Gulf Stream, Manalapan, Ocean Ridge, and Palm Beach.
As a testament to this fact, two out of four units of the Cove 4 development are already under contract to be sold, and the development has not even been completed yet. Two units of The Cove 4 are still available, and prices start at $3.495 million USD.
If you are in the market for a luxury home in South Florida, come see what Seaside Builders has to offer. For more information, please contact us by email at reception@seasidebuildersfla.com or by phone at (561) 272-9958.