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Trust This.
By Joseph E. Seagle, Esq. ● Dec 13, 2024
Smart Brevity® count: 4.5 mins...1134 words
👋 Happy Friday! Tomorrow is National Wreaths Across America Day. For information on how you can participate, check out this site.
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1 big thing: Surging property taxes deepen FL’s affordability crisis
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A recent Redfin report highlights substantial increases in property taxes nationwide, exacerbating affordability issues. In Florida, where home prices have soared, the tax spike is stretching buyers’ budgets thin.
Why it matters: Significant property tax jumps add another layer of complexity to Florida’s challenging housing market, potentially deterring buyers and impacting sales.
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Rising assessments: As property values climb, tax assessments follow suit, leading to higher annual tax bills for homeowners.
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Budget constraints: Increased taxes can push monthly housing costs beyond what many buyers can afford, shrinking the pool of potential purchasers.
The big picture: Florida’s real estate market has been buoyant, but these tax hikes threaten its momentum.
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Market cooling: Higher ownership costs may slow demand, leading to longer listing times and potential price adjustments.
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Investor caution: Property tax increases could deter investors seeking profitable rental yields, affecting the rental market supply.
Between the lines: Real estate professionals must navigate these changes to maintain client trust and grow business.
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Client education: Agents must inform buyers about potential tax liabilities and incorporate them into affordability calculations.
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Strategic planning: Understanding local tax trends lets professionals advise clients on timing and market entry strategies.
What real estate professionals can do:
1. Stay informed: Keep abreast of property tax developments and projections in their areas.
2. Advocate for clients: Work with local authorities to understand assessment processes and potential exemptions or relief programs.
3. Financial guidance: Collaborate with mortgage professionals to explore financing options that mitigate the impact of higher taxes.
4. Market adaptation: Adjust marketing strategies to highlight properties with lower tax burdens or areas with more stable rates.
The bottom line: Proactive engagement with the evolving tax landscape will enable Florida real estate professionals to better serve their clients and sustain market vitality amidst affordability challenges.
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2. Why you should care about the Fed’s next move on rates
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📊 The Big Picture:
The Federal Reserve cut interest rates by 25 basis points the last time it met, signaling an attempt to recalibrate its policies in response to shifting economic conditions. While inflation has cooled, uncertainties about its trajectory—exacerbated by the incoming Trump administration—create a precarious moment for entrepreneurs.
💡 Why It Matters:
Interest rate changes ripple through the economy affecting business costs and opportunities:
• Rising Rates: Increased borrowing costs for loans and credit, which can dampen growth plans and squeeze cash flow.
• Falling Rates: Easier access to capital but with potential for higher inflation, affecting input costs.
Florida’s dynamic business landscape, from real estate developers to tech startups, makes entrepreneurs uniquely vulnerable to these fluctuations.
🏠 The Real Estate Angle:
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Mortgage rates, influenced by long-term Treasury yields rather than the Fed’s short-term moves, remain elevated.
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This creates challenges for the housing market, including reduced mobility and high borrowing costs for property acquisitions.
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Entrepreneurs in real estate or construction may find growth opportunities limited despite rate cuts.
🛠 What You Can Do:
1. Scenario Planning: Develop financial forecasts under both rising and falling rate environments to understand the potential impacts on your business.
2. Debt Management: Refinance high-interest loans where possible to lock in lower rates.
3. Monitor Key Indicators: Inflation reports, Treasury yields, and Fed communications offer early clues about future monetary policy.
📌 What’s Next:
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The Federal Open Market Committee (FOMC) — a division of the Federal Reserve responsible for setting monetary policy — will meet next week for the last time in 2024.
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Experts, including former Fed Vice Chair Richard Clarida, suggest that while further rate cuts are likely, the Fed remains cautious.
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Its decisions will depend on the interplay of inflation trends, fiscal policies, and economic data.
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Florida entrepreneurs should pay close attention to these developments to stay ahead of market shifts.
📢 The bottom line:
Whether the Fed raises or lowers rates, the effects will trickle down to your business. You can turn potential risks into strategic advantages by staying informed and proactive.
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This week on Trust This, real estate coach and mentor Mark Monroe and I discuss creative real estate strategies for 2025.
Listen in or watch on your favorite streaming platform.
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Meta.ai
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No, Wall Street investors aren’t buying up all the houses and they don’t own nearly as much as you’ve heard recently. HousingWire
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Where to invest in real estate right now. Bloomberg (gift link for limited time)
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The top 10 housing markets for 2025. Realtor
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If you earn money via Paypal, CashApp, Venmo or anything like it, be prepared for this new tax reporting change. CNET
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As Fannie Mae revises its forecast, what’s in store for 2025’s housing market? MPA Mag
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4. Closing Thought: Rooting out toxic leaders
The 8-foot tall Flat Iron sculpture that stands in front of the Flat Iron Building in Asheville's midtown Wall Street district has gotten a knitted cozy for the winter.
Toxic leaders erode organizational culture, reduce employee engagement, and hinder overall performance. Identifying and addressing these detrimental leadership styles is essential for fostering a thriving workplace.
The Big Three Toxic Leaders
1. The Sovereign
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Recognition: Authoritative and domineering, they make unilateral decisions without consulting their team and reject feedback or criticism.
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Impact: Stifles creativity, leads to high employee turnover, and creates a culture of fear and resentment.
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Action: Promote open dialogue by implementing anonymous feedback systems, providing collaborative leadership training, and setting up checks and balances.
2. The Peacekeeper
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Recognition: Avoids confrontation, shies away from difficult conversations, and often compromises to maintain superficial harmony.
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Impact: Leaves important issues unaddressed, leading to unresolved conflicts, lack of accountability, and decreased team efficiency.
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Action: Encourage constructive conflict resolution through workshops, establish clear performance expectations, and reinforce the importance of addressing issues promptly.
3. The Veteran
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Recognition: Resistant to change, relies heavily on “how things have always been done,” and dismisses innovative ideas from newer team members.
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Impact: Hampers innovation, demotivates progressive employees, and prevents the organization from adapting to market changes.
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Action: Foster continuous improvement by encouraging professional development, introducing mentorship programs that value new perspectives, and aligning goals with current industry trends.
The bottom line: Toxic leadership doesn’t just affect morale—it impacts the bottom line. By actively identifying and transforming or removing these leaders, organizations can improve employee satisfaction, boost productivity, and drive sustainable growth.
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Be on the lookout for our next issue! 👋
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