Anyone With Florida Tax Lien Experience?
I am puzzled with grasping the appeal of purchasing Florida Tax Liens. The maximum interest rate is 18%. However, the typical tax certificates at this time are going for around 3.3% according to the tax office. Also, when the 2 yr. redemption period is up, you only get to BID on the property in the amount that you paid plus interest. Why is there so much competition for these certificates. What am I missing here?????
Sonja
This is a bad year for stocks so alot of people are pulling their money out and investing in other things. plus banks that are paying 1% on savings accounts will get an automatic 5% on the lein if it is redeemed in the first year which 85-90% do. then it reverts down to their bid percent for the second year. Which in Palm Beach County this year was 1/2% for most bidders. The county tax office employees has never seen it this way Once the interest rate goes up on accounts it will be back to normal, because they cannot afford to get 5% on a tax lein if they are paying 3% on the money.
Hope this helps
Hope your right. 5% isn't a lot of yield when you consider the time and work envolved. And then if it goes the two years your down to a little better than 2 1/2% as there is no automatic tax deed in Florida. (It goes to auction and if it is homesteaded you must bid a minimum of 1/2 of the appraised value along with he taxes)
Sonja