Serving North Carolina
Florida, New York and Tennessee
(800) 201-0413

Check out our blog for regular postings about our practice areas and other topics of interest.

Investments in Luxury Real Estate Go Up in New York and Florida

Posted on: June 12th, 2014
luxury real estate investmentReal estate investments, when made properly, offer long-term returns and tax benefits. A recent report by Christies International Real Estate shows more individuals are making investments in luxury homes. Out of the states our asset protection attorneys serve, both Florida and New York took notable places in the survey.

New York City ranked second globally in 2013 with respect to sales volume of luxury real estate. For those new to owning a home in New York, less than two months ago New York State approved significant changes to the state estate tax. Individuals who purchased or already own a luxury home in The Empire State need to consider the estate tax, which also applies to real estate owned by non-residents. The maximum tax rate through March 2015 is 16% and the estate tax exemption is now $2,062,500. The estate tax exemption will increase annually. (Keep in mind, luxury home sale prices went up 7.6% from 2012-2013. Forecast future home values when reviewing your estate plan.) Under the new law, if an estate is 5% larger than the exemption amount, then the entire estate is taxed.

Miami ranked fourth globally in 2013 with respect to the number of luxury home sales. The report attributes the attraction to Miami in part due to Florida’s lack of an income tax. Miami also exhibits the highest value for money out of the top ten cities studied in the report. The city boasted the lowest-price per square foot for luxury homes.

To protect real estate investments and save taxes, explore trust and other options with an estate planning attorney. While Florida offers residents an unlimited homestead exemption from creditor claims, vacation or investment property has no such protection. Virtually all New York real estate is vulnerable as well as heavily taxed. (Florida happens to rank in the top 10 states with the worst lawsuit environment. Review information about asset protection in Florida.) Trusts can also help avoid probate so that your real estate investments pass on to those you designate without delay.
Share |

Comments (0)

Post a comment
You have to login or register in order to post comments
Forgot Password? Enter Login Email


Your Email:
Remember me


Get email notifications when we post new blogs. Subscribe Now!



View All Blog Posts