Question:  You responded to a question about portability where the new home to be purchased is of a higher price.  Here is my situation.  My home has a market value of $409k, Assessed value of $175,500, less $25k homestead, giving me a taxable value of $150,500.  Now I purchase a new home with a lower price of $300,000.  How is the portability handled in this instance?

Toby Says:  When you trade down to a home of lesser value, portability works on a percentage basis. In your case, your current assessed value is 43% of your just value. If the just value of your new home is $300,000, it would be assessed at $129,000 (43% of $300,000). Your taxable value would be $104,000 ($129,000 less $25,000). Remember that the just value is determined by the Property Appraiser and may not be exactly the same as the purchase price.

Question:  Heard the Palm Coast marina & resort were been sold this week. How do we find out if this is a done deal?

Toby Says:  Centex has been very open about the fact that they are seeking buyers for both the marina/resort and Marineland properties. I spoke with a Centex executive today who confirmed that they are talking with several parties who have shown interest. They cannot disclose the names of the parties or the status of the negotiations at this time because it may hinder the negotiations. But he did confirm that as of today (11/15), no deal has been struck.

Question:  What can you tell us about the salt water canals in Palm Harbor?  We are interested in relocating to this area from Jacksonville Beach because we are boaters.  Does the property owner own the canal?  How long have the canals been there and who maintains them?  I heard the city does maintenance dredges and that the homeowner was responsible for 20 ft. along the bulkhead.  There seems to be a very large price difference in homes in that area.  We currently live on a salt water canal and we own the property to the center of the canal.

Toby Says:  In Palm Coast, the property line ends at the bulkhead. The city owns and maintains the canals, which were dug over 20 years ago. In a standard width canal, you are allowed (with permits) to build a dock that extends no more than 12 feet into the canal. You dock may not extend to within 15 feet of your side lot line. If you are on a wide canal or a basin, the dock may extend 16 feet. Property owners may have to pay for extra dredging required for a deep draft sailboat. Typically, owners will pool this burden with neighbors to keep individual costs down.

Question:  I've owned a lot in Ocean Hammock for almost 3 years.  It's on the golf course overlooking the lake and the 6th hole.  I'm 200 yards from one of the best beaches in Florida.  It's a fabulous lot and we look forward to eventually building.  Can you give me your perspective on how the value of the lots in places like Ocean Hammock is holding up in this current crunch?  Thanks!

Toby Says:  I can’t speak specifically to your lot, not knowing where it is located. However, Ocean Hammock lots are suffering the same fate as lots in general. Seven of the ten lots sold in 2007 were below $400K. The lowest price sale was $24K paid for a lot on Flagship. More important is the imputed value of a Ginn Club membership. With Ginn’s purchase of the Ocean Hammock golf club and Inn, it is even more desirable for Ocean Hammock lots to have a membership associated with them. Ocean Hammock properties without Ginn memberships will be considered as amenity orphans. Those with memberships should do well in the future, but I believe prices will remain depressed for at least  another 18 - 24 months.

Question:  I recently purchased an 2710 square foot house in Palm Coast in the P-section. My plans are to install a pool for the future sale. My deal was $295.000. Please comment. Thanks in advance.

Toby Says:  You paid about $115 per square foot for your home. This is slightly on the high side of per square foot prices in the current market in your neighborhood. Within the past few months, homes in your area have sold at prices up to $120 per square foot but many are below $100 per square foot.

A pool does not add as much value to a home (for resale) as it cost to install. So building a pool to increase the salability is not a good investment, especially if your property is going to be priced at the high end of the neighborhood market. On the other hand, if you plan to live in the home, build a pool if it suits your lifestyle and you can afford it.

Question:  What can you tell me about a property sale in Bunnell, January 2006, known as Oak Branch (602 acres)?

Toby Says:  The sale was a little larger than 602, about 644 acres. It consisted of three large parcels trading for $12 million and five smaller parcels trading for $6 million. The combination of parcels fronts both US 1 and SR 100. The new owner, OB Investors LLC is building a public golf course, named Oak Branch on the site. The course is scheduled to open soon.

Question:  What can you tell us about Tidelands.  At one time I think Centex bought in and then there were rumors about Ginn purchasing it.  I am specifically interested in the lots that front the Cotton canal along the western end of the entrance.  They were in a hurry to clear the property and there it sits.

Toby Says:  Tidelands, formerly developed as The Village at Palm Coast, was purchased by Centex. About a year ago, Ginn purchased the Ocean Hammock golf club from Centex but, after consideration, declined to buy Tidelands. The seven canal lots you mention were sold by Centex to individuals at prices ranging from $400,000 to $539,000.

Question:  One reader asks “I understand Matanzas Woods Golf Course is closed down for renovation and it’s behind schedule already. What's the latest rumor mill for this area?”  On the same topic, another reader inquires, “I reside on the 13th green of Matanzas Woods Golf Course.  I and many of my neighbors are interested and concerned as to the plans of this golf course.  It is presently closed for renovations.  Do you have any idea as to the plans of this course and more particularly the 13th hole?”

Toby Says: A LandMar representative explained that while they are doing some preliminary clearing on the front nine of the Matanzas Course (the new name), they are still in the permitting process with the city and St. Johns Water Management. Especially with SJWM, this process can take a long time. I don’t expect the course to open in 2008. The new plans will reroute many holes on the back nine. The current 13^th hole will be relocated to the other side of the canal and become the 11^th hole. Part of the existing hole will be excavated, giving a larger water area view to adjacent home owners. The view will include the new 11^th hole and the new 12^th tee box.

Question:  I find the issue of “portability” extremely confusing. Perhaps someone can clarify using this hypothetical scenario. I have lived in a 1600 sq.ft. house for a number of years.  The just market value is $157K. The assessed value is $87K less $25K Homestead exemption for a total taxable value of $62K.  Taxes are approx. $1,029. What happens if I move to a 2100 sq.ft. home whose just market value is $178K and assessed value is $178K less $25K for a total taxable value of $153K. Taxes are approx. $2,500.  What would be the taxable value of my new residence? I imagine a lot less than the previous owner! Am I correct?

Toby Says:  First, the size of the house makes no difference, only the value. In your hypothetical scenario, your present home has a just market value of $157K and an assessed value of $87K. Thus, you have accumulated a difference in assessed value of $70K ($157K minus $87K). If you trade up to a more expensive home, that savings is 100% portable (up to $500K). That means that the new home with a just market value of $187K would be assessed for tax purposes at $117K ($187K minus the portable $70K). The change in exemption from $25K to $50K would apply to your existing home as well as to the new home. But remember, the additional $25K exemption does not apply to school taxes. So you would pay school tax on $117K less the $25K exemption. Your remaining taxes would be paid on $117K less the new $50K exemption.