Understanding Property Taxes: Basics for Homeowners and Investors

Property taxes are a fundamental aspect of homeownership and real estate investing, impacting financial decisions and long-term planning. In this blog post, we provide a simple overview of property taxes in the State of Florida and St. Johns County. What are Property Taxes? Simply put, property taxes are levied by local governments on real estate properties. They are a primary source of revenue for local authorities, funding essential public services such as schools, roads, and emergency services. In St. Johns County, these taxes are pivotal in maintaining the quality of our community infrastructure. How are Property Taxes Calculated? Property taxes hinge on two main components: Assessed Value: This is the valuation of your property, determined by the local assessor's office. In St. Johns County, assessments typically reflect the market value, considering factors like location, size, and property condition. Tax Rate: Set by local government entities, the tax rate can vary based on the property's location and type. In Florida, tax rates are expressed as a millage rate or “mills.” Millage is a tax rate defined as the dollars assessed for each $1,000 of value; one mill is one dollar per $1,000 of assessed value. Mathematically, the equation for property taxes in the State of Florida is:  Assessed Value ÷ 1,000 x millage rate = property taxes owed  Property Tax Variations and Exemptions Property taxes can differ based on various factors, including the property's location and type. In Florida, homeowners may be eligible for exemptions that can significantly reduce their tax burden. Notable exemptions include the Homestead Exemption, senior citizen discounts, and reductions for veterans. For more information on property tax exemptions in the State of Florida, click here.  Impact of Property Taxes on Homeowners and Investors For homeowners, property taxes are a key factor in determining monthly mortgage payments and overall affordability. Investors, on the other hand, need to consider how these taxes affect their cash flow and property valuation, influencing their investment strategy. Managing and Challenging Your Property Tax Assessment Managing property taxes efficiently can involve setting up escrow accounts with your mortgage lender. If you believe your property tax assessment in St. Johns County is inaccurate, you have the right to challenge it. This process involves filing an appeal with the local assessor's office, providing evidence to support your claim. Property Taxes in the Future Property taxation is subject to change, influenced by economic trends and local policies. Staying informed about these changes is crucial for both homeowners and investors to adapt their strategies accordingly. Whether you're a first-time homeowner or a seasoned investor, understanding property taxes is essential for making informed real estate decisions. This guide provides a foundation, but each situation is unique and it is always best to consult with a licensed certified public account or financial advisor. For assistance with your real estate needs in St. Johns County, Florida, feel free to reach out.

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The Home-Buying Roadmap for Beginners

Your journey toward purchasing your first home can be both exhilarating and daunting so we composed this blog to simplify the home-buying process, breaking down each stage into manageable parts. From securing your pre-approval to the momentous closing day and everything in between, our roadmap will guide you through the essentials of home buying. 1. Select A Real Estate Agent It’s imperative to select a Real Estate Agent who prioritizes YOUR interests. Opt for an individual with extensive experience in selling homes within your vicinity and someone you can confidently depend on to guide you through every phase of the home-buying journey. 2. Obtain Financial Pre-Approval The real estate market is dynamic, making preparedness essential for swift transactions. To accurately gauge your purchasing power, a loan officer will require key documents, such as a credit assessment and employment verification. While the excitement of a new home might tempt you to make other big purchases like a new car or furniture, it’s crucial to refrain from any actions that could alter your current credit status. If you plan to make a cash offer, you should still obtain a proof of funds letter showing you have sufficient funds to close to accompany any offer you make on a property. 3. Analyze Your Needs in a Buyer Consultation Be transparent with your real estate agent. This is your moment to convey not only your visual preferences for a home but also the nuances of your daily life. By sharing these insights, you allow your realtor to pinpoint the ideal home tailored just for YOU. 4. Select Properties Your realtor will monitor the real estate market and should notify you of any new listings that potentially match your home criteria. Should a property pique your interest, your realtor will arrange a showing for you at a time that suits you best. 5. View Properties Whether touring virtually or in person, this is the fun part! It's important to keep a discerning eye during property showings. Working with an experienced real estate agent will ensure nothing is overlooked. Pay close attention to the condition of the property, looking for signs of wear, water damage, or any necessary repairs. Evaluate the layout and space to ensure it meets your lifestyle needs. Take note of the neighborhood and its amenities, as well as the proximity to schools, stores, work, and transportation. Don't hesitate to ask questions about the property's history and any potential issues. Additionally, consider the overall feel of the home; does it resonate with your vision of a comfortable and welcoming space? By being attentive to these details, you can make an informed decision that aligns perfectly with your desires and requirements. 6. Write an Offer to Purchase & Negotiations You’ve found the property you want and are ready to make an offer! It’s time for your realtor to write up a purchase agreement. While much of the agreement is standard, there are a few areas that you can negotiate, such as price, move-in date, and additional property. This is where an experienced realtor is key as you can rely on their expertise to ensure you feel 100% confident you’re getting the best deal possible. 7. Offer Accepted! Fantastic news – your offer has been accepted! At this stage, you will pay the escrow deposit (typically 1% of the purchase price) to the title company. Following this, you’ll proceed with property inspections and the loan application process. 8. Inspection Period During the inspection period, buyers are entitled to hire a professional to assess the home’s condition. Expect a licensed home inspector to assess the home's structural integrity, electrical and plumbing systems, HVAC, and other vital components. This is a critical phase where potential issues can be identified. Be prepared to receive a detailed report that outlines any concerns or necessary repairs. While some issues are common and manageable, others may require negotiation with the seller. It's essential to maintain open communication with your real estate agent during this period, as they can help you navigate the inspection findings and guide you through the next steps. Remember that the goal is to ensure the property meets your expectations and is a sound investment. 9. Obtain Mortgage Financing You’re on the cusp of finalizing your home purchase with the closing date now set. Your lender will order an appraisal, which is an estimate of the value of the property by a licensed professional appraiser. The goal of the appraisal is to verify the value of the property for the lender. If the appraisal comes back below the purchase price, you’ll be back at the negotiating table. Your lender will also require you to obtain a homeowner’s insurance policy before closing. 10. Prepare to Close If the seller doesn’t have a recent and satisfactory property survey, the title company will order one for you. This survey provides a detailed map of the property ensuring you have a clear understanding of its boundaries. The title company will also review the property’s history to confirm its legitimacy, which includes checking for any outstanding mortgages, liens, judgments, easements, unpaid taxes, or other potential barriers to your ownership. Once the title is verified as clear and valid, the title company will provide a title insurance policy. You may be asked to pre-wire money a day or two before closing to verify you have all the necessary funds. Whether pre-wiring or bringing a check to closing, it’s important to make sure your finances are in order so the closing goes smoothly. 11. Close the Property The closing day signifies the culmination of your home-buying journey. Come prepared with two forms of identification, ensure utilities are activated at your new home, and set aside at least 1 hour for the closing proceedings. 12. Take Possession of the Home After closing, you'll receive the keys to your new home. It's time to celebrate and start planning your move! Don't forget to update your address with the post office, utilities, and any relevant institutions. Additionally, consider setting up a maintenance schedule to keep your property in great shape. We hope you feel more confident and prepared for your home-buying journey. Remember, purchasing a home is a significant milestone, and having the right guidance makes all the difference. If you have any questions or need further assistance, don't hesitate to reach out.

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10 Tips for Budget Travel in St. Augustine, Florida

Vacationing in St. Augustine, FL, can be a wonderful experience, even on a tight budget. This historic city, brimming with culture and scenic beauty, offers numerous ways to enjoy your stay economically. Here's an expanded look at 10 savvy tips for an affordable yet enriching visit to this captivating city. 1. Plan Your Visit During Off-Peak SeasonsTraveling to St. Augustine during the off-peak seasons, such as late fall or early spring, can significantly reduce your expenses. During these times, you'll find that hotels and vacation rentals often offer lower rates compared to the peak tourist seasons. The same goes for weekends throughout the year. You can enjoy savings on accommodations when staying mid-week if that is possible for you. As a bonus, the milder weather during these months makes it ideal for outdoor activities and exploring the city comfortably. 2. Explore Free AttractionsSt. Augustine offers a plethora of free and budget-friendly activities that cater to a wide range of interests, making it an ideal destination for visitors looking to explore without breaking the bank. The heart of the historic downtown district, St. George Street, is a pedestrian-only zone filled with quaint shops, cozy bistros, art galleries, gift shops, occasional street performers, and historical sites like the Oldest Wooden Schoolhouse that you can enjoy simply by taking a stroll down the street. The city’s pristine beaches provide a perfect setting for relaxation and leisure, most of which are accessible free of charge. Historical sites like Fort Matanzas, accessible by a free ferry, and Fort Mose Historic State Park, the first free African settlement in North America, offer insightful glimpses into the past without the need to pay an entry fee. Other notable free attractions include the Governor’s House Cultural Center and Museum, various historical churches, and the St. Photios National Greek Orthodox Shrine. The Plaza de la Constitución is a public park that hosts various events and has multiple historical monuments to see. The Cathedral Basilica of St. Augustine, a stunning example of Spanish colonial architecture, is also open to visitors free of charge. 3. Take Advantage of Discounted ToursTo fully appreciate St. Augustine's history, consider joining a guided tour. Look for discounts on walking, trolley, or boat tours, especially those offered online or for larger groups. These tours provide insightful narratives about the city's past and present, making them worth the investment. 4. Dine Like a LocalOne of the best ways to experience St. Augustine is through its food. Avoid the more expensive, tourist-oriented restaurants in the historic district and find where the locals eat. From cozy cafés to off-the-beaten-path restaurants, there are plenty of affordable options that offer a taste of local cuisine, including the city's famous seafood dishes. Some local hot spots that won’t break your budget include Osteen’s, Osprey Tacos, Nalu’s Tropical Takeout, and Gas Full Service Restaurant.  5. Use Public TransportationUtilizing St. Augustine’s public transportation can save you a considerable amount on travel expenses. The Sunshine Bus Company is an economical choice, with routes covering most of the key attractions. This not only saves money but also the hassle of finding parking in the busy city. St. Augustine also offers a convenient shuttle service to enhance the travel experience for both locals and visitors, especially during peak times and special events. This service includes free parking and shuttle rides on a first-come-first-serve basis provided by the City of St. Augustine and St. Johns County. Key events like the 4th of July and Nights of Lights feature these shuttles, alongside year-round services for the Beach Shuttle, St. Augustine Amphitheatre, and First Friday Art Walk. Additionally, there are paid shuttle options like Explore Tours & Pickups, Pedicabs, and Trolley Shuttles, offering easy transportation around the city.  6. Stay in Budget-Friendly AccommodationsInstead of expensive hotels, look for more budget-friendly options like guesthouses, bed and breakfasts, or short-term vacation rentals. These types of accommodations often provide a more authentic and personal experience of the city. Booking well in advance can also help you snag the best deals. If you plan to stay at a vacation rental, select one in the West King or Butler Beach area to avoid paying premium rates. West King offers convenient access to the historic downtown district while Butler Beach gives you a dream beach vacation without the crowds. No matter where you stay in St. Augustine, rest assured that the historic downtown district and our beautiful beaches will only be a short drive away at most, so save your money and book a rental outside of the touristy areas. If you’re an outdoor enthusiast looking for a good bang for your buck, Anastasia State Park offers campsites for less than $40 per night. 7. Enjoy Nature’s BountySt. Augustine isn’t just about history; it’s also home to stunning natural beauty. More than 42 miles of white sandy shores line St. Augustine and its surrounding areas. A favorite is St. Augustine Beach due to its laid-back feel, impressive fishing pier, and nearby restaurants. The St. Johns County Ocean & Fishing Pier in St. Augustine Beach has free parking, restroom facilities, outdoor showers, and a splash pad for kids to enjoy. Most of the beaches in St. Augustine are open to the public free of charge. You can even drive onto the beach without paying a fee during the off-season (October - February). For a nominal per-vehicle fee, you can spend the day at Anastasia State Park ($8 per vehicle), Guana State Park ($3 per vehicle), or Washington Oaks State Park & Gardens ($5 per vehicle) and enjoy gorgeous nature trails, scenic views, and beach access.  8. Attend Free Events and Local FestivalsThroughout the year, St. Augustine hosts a variety of free events and festivals. From outdoor concerts and art exhibitions to cultural festivals, these events are a great way to immerse yourself in the local culture without spending money. When planning your visit to St. Augustine, check my website for the latest events in St. Augustine.  9. Shop SmartFor souvenirs, avoid the pricey tourist shops and instead explore local markets and thrift stores. These places often have unique and affordable items, making for more meaningful souvenirs that won’t break the bank. 10. Budget WiselyBefore your trip, plan a budget for different categories like meals, accommodations, transportation, attractions, and souvenirs. Stick to this budget to avoid overspending. Being mindful of your expenses will allow you to enjoy your trip without financial stress. There are a lot of helpful templates online you can use to get started, such as this one for Excel and Google Sheets. By incorporating these tips into your travel plans, you can enjoy the rich experiences St. Augustine has to offer without overspending. Each point is designed to help you make the most of your visit. Whether you're soaking in the city's history, enjoying its culinary delights, or relaxing on the beach, St. Augustine offers a wealth of experiences that cater to budget-conscious travelers.

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