Assetz® News - The solar state?

The solar state?

3rd November 2008 |

For the benefit of anyone living in a cave without a TV aerial, the US presidential election is taking place this week. After what may seem to many like an interminable process of primaries, rallies, speeches and television debates, the world is poised to discover whether it will be John McCain or Barack Obama that takes over from George W Bush in the New Year.

But the day will not just see voters going to the polls to select a new head of state. There will be elections for both houses, plus a number of single issues being subjected to referendum, usually through amendments to state constitutions.

Many eyes will be on Florida as a 'swing' state, whose large bloc of electoral college votes could decide the presidential election (as it did in such controversial circumstances in 2000). But Floridians will also be delivering their verdicts on a range of proposed amendments.

For those involved with property investment in the US, particularly in the Gulf region, Amendment Three will be the main focus of interest. Under this change, there will be no increase in property tax for anyone who carries out work to either make a residential property safer from tropical storms or add renewable energy devices.

Commenting on this proposal, news provider Newschief.com said voters should give it their backing. It stated: "The amendment would provide a tax benefit as well as an incentive to make homes more energy-efficient and protect them from brutal storms. We see only upsides from this amendment and add our support for it."

Investors in property may see it that way too. For those who buy in the future, there may be a greater supply of homes that come with these installations, lowering the cost of insurance against hurricanes and bringing down fuel bills. On the other hand, those who buy properties without such additions can take up the option of installing them without negative tax consequences. This being the sunshine state, of course, renewable energy will tend to mean solar panels, which could go a long way to bringing down fuel bills and making homes more eco-friendly.

So whatever political colour Florida turns this week in the Presidential election, the best result for investors in the state may be a green vote.

Of course, buyers will still be keen to make sure that they are not buying into a market that is likely to go on declining like it has in the last couple of years. A few weeks ago the Cay Compass suggested this would not be the case. Reporting on the market, this Cayman Islands paper noted that there have been reports of stabilisation thanks to the bolstering effect of high tourist numbers. It quoted John Mike, the National Association of Realtors president’s liaison to the UK, as stating: "The real estate market throughout Florida declined dramatically from mid 2005 to Spring 2008, with positive signs of stabilisation occurring in recent months."

So it may just be that for Florida investors there is the prospect of a more stable market in which to invest, not to mention a greener one.