A beautiful community of just over 35,000 residents is the southern Orange county city of Dana Point in California. This great beach community is well known for its surfing, fishing and especially whale-watching. Dana Point is known as the “Whale Capital of the West”, and in 1990, one of the very few known specimens of the megamouth shark was caught off its shore. The Dana Point real estate area is also designated as a California Historical Landmark. Dana Point real estate was described as “the only romantic spot in California”, by its namesake, author Richard Henry Dana, Jr., in a visit to the area and neighboring San Juan Capistrano. Dana Point real estate began as a planned community by a developer. However, the economic depression of the early 1930s stopped the construction and by 1939, the original investors had sold out to private individuals. That tragedy did not stop the future development, which was revived in the 1950s, as today there are more than 14,000 homes, and Dana Point real estate continues to be desirable to people seeking a beach front retreat. In addition to the city, Dana Point is also home to Dana Point Harbor, housing more than 2500 boats within two marinas. The full service Dana Point Harbor meets all the needs of ships and boats visiting or residing here, including guest slips, a fuel dock and an array of recreational choices. The harbor is also home to more than 17 dining establishments and over 30 specialty shops to appeal to the diversity of residents, tourists and visitors. Purchasing a piece of Dana Point real estate also offers the chance for one to ‘get their sea-legs’, as many water related instructional classes are held at the community center. If you prefer the landlubber’s life instead, you could invest in the Dana Point real estate market just to live in a beautiful harbor city and still enjoy the magnificent whale watching opportunities from shore at the Salt Creek Beach. Here you can sit on benches that overlook the gray whale migration routes. Each September the Tall Ships festival comes to Dana Point Harbor offering those fortunate enough to own Dana Point real estate the opportunity see some of the most magnificent vessels in the world. The festival is considered the largest annual gathering of Tall Ships on the West Coast of the United States, and features an amazing array of tall ships converging in and around Dana Point. The California State Parks system also manages a nearby State Park called Doheny State Beach. Owners of Dana Point real estate are just a few miles away from this vacation hot spot. Comprised of over 60 acres, its main feature is the mile-long sandy beach with the best surfing and swimming in the clear blue ocean. In addition to the beachfront activities, the park also has a campground with 120 developed family campsites and a picnic area complete with more than 100 picnic tables and barbecue grills.

No matter where you live, state taxes are a part of life. States use the taxes collected from homeowners to pay for vital community infrastructure. In Florida, the state collects approximately $36 billion per year in general tax revenue, which is used for schools, health care assistance, environmental protection, and numerous other state-funded programs. Taxes on businesses, large corporations and merchandise, rentals and services make up the majority of this revenue, but Florida homeowners also make a significant contribution.
A clear understanding of Florida property taxes is an asset to any Florida home buyer. If you are considering a new home purchase in Florida, knowing the amount of tax you will need to pay, both at closing and on an annual basis, is an integral step in establishing a realistic housing budget. Certain taxes are assessed at the time of closing on your new home, while most annual taxes are deducted from your initial escrow account. An additional tax payment added to your monthly mortgage is used to replenish this escrow account each year.
Taxes due at closing
Whenever real estate is transferred in Florida, either by quit-claim deed, warranty deed, or a written obligation to pay (such as a mortgage) is filed, a Florida document tax must be paid to the County Clerk’s Office if the document is files, and directly to the Florida Department of Revenue if the document is not filed.
The Florida home buyer will be assessed a Florida mortgage tax, which is typically $0.35 per every $100 of the home’s value. A Florida State Mortgage Intangible Tax may also be assessed at an average rate of $0.35 per every $100 of the home’s value. Taxable home value is calculated by using a fair market price estimate.
Ad Valorem (property) taxes
All Florida residents are required to pay an annual Ad Valorem, or property, tax. The amount of tax due each year depends on the taxable value of your home, and on your county of residence. A comprehensive list of property tax rates among Florida counties can be obtained from the Florida Department of Revenue.
Tax exemptions
For many Florida residents, tax exemptions help to lower their annual property tax bills. The primary exemption available in the state of Florida is the Homestead Exemption, but there are many others available. The Widow’s and Widower’s Exemption, The $500 Disability Exemption, and the $5,000 Disability Exemption, to name a few. Tax exempt amounts are deducted from the fair market value of the home.
Homestead Exemption
The largest tax exemption for Florida home owners is the Homestead Exemption. A Homestead Exemption allows you to deduct $25,000 from the fair market value of your Florida home. To qualify, you must be a Florida resident, the home in question must be your primary residence as of January 1st.
Applying for this exemption is relatively simple. First, you must obtain a Homestead Exemption from your local property appraiser’s office. Standard application questions include: Name on property’s recorded title, street address of the property, length of time title holder has been a Florida resident, confirmation that title holder has a Florida license plate and driver’s license, and whether title holder resided at the property address as of January 1st.
Tax exemptions for disabled persons
The state of Florida offers several tax exemptions for those with permanent disabilities. Any Florida resident who is totally and permanently disabled may qualify for at $500 exemption. Residents who are ex-service members and who sustained at least a 10% disability in war or service-connected injury may apply for a $5,000 exemption on any property they own.
If you are an ex-service member who sustained an injury in wartime or service-related activities which let to a total and complete disability, you may be entitled to a complete tax exemption on your primary residence.
Property tax exemptions in the amount of $500 are available to blind persons residing in Florida.
Additional exemptions
Finally, property tax exemptions are available to widowed residents and residents over the age of 65. Florida Residents over the age of 65 who have an annual income of less than $20,000 may be entitled to an additional $25,000 Homestead Exemption.
Any widow or widower who can show permanent Florida residency is entitled to an additional $500 tax exemption. This exemption is revoked upon re-marriage.
For additional information on tax exemptions, qualifications, residency requirements and application forms, Florida residents can contact the county property appraiser, tax collector, or Florida Department of Revenue.

Zoning laws may affect the value of your real estate investment. There are three main zoning area, and these are residential, commercial, and industrial. Residential zoning applies to residences and multi family dwellings, commercial zoning usually applies to businesses, and industrial zoning normally applies to manufacturing shops and plants. Zoning laws will vary from area to area and city to city, so make sure that you know the zoning restrictions on any real estate before you invest.
The purpose of zoning laws is to specify what types of dwellings or businesses may reside in a certain area. Obviously you would not want to see an adult entertainment club next to an elementary school, or a manufacturing plant in the middle of a residential area. Zoning laws group areas of the town or city into specific areas for each type of land use. Zoning laws may change, and a real estate investment that is zoned commercial or residential today may be rezoned for another use in the future.
If you invest in real estate that is rental property, your tenants may cause zoning problems. Tenants who run a business from their home may unknowingly violate zoning laws, so it is very important to have a clause in your lease agreement stating what can and can not be done on your rental premises. Most home based businesses are not a problem, but if the tenant has customers coming to the property, there may be complaints about noise or traffic which can cause problems.
Another way that zoning laws may affect your real estate investment is when zoning is changed from one class to another. If the zoning is changed from residential to another class this can mean a higher property value, which means more value for your investment.. If the class is changed to residential then the property value may drop, causing you to lose money on your investment. Sometimes there is a conditional zoning requirement. One case may be where a residence has existed on a property for years. If the zoning laws change the area from residential to commercial, the city can not force the owner to sell or tear down the residence. But if the home is destroyed in a natural disaster or fire it can not be rebuilt, and only commercial buildings can be built on the land.
It is very important for a real estate investor to know the zoning requirements of any property before they invest. Find out what these laws are and any proposed changes. This can save you a lot of money and aggravation. Make sure that your lease agreement states what activities are allowed and not allowed on the rental premises. Find out what the other properties in the same area as the possible investment are zoned. By being aware of the zoning laws and requirements you will avoid some costly and time consuming mistakes.
Copyright © 2007 Joel Teo. All rights reserved. (You may publish this article in its entirety with the following author’s information with live links only.)