The “Bowtie economist,” a housing market expert, is packing his bags and moving to South Florida for the tax savings.
Economist Elliot Eisenberg, who gives roughly 80 speeches a year tied to the economy and housing, said he has been thinking about it for a couple of years.
He recently pulled the trigger, paying $740,000 for two-bedroom, 2,120-square-foot condo at 20191 East Country Club Drive in Aventura. Denise Rubin of Coldwell Banker represented the seller, while Katia Reisler, Tali Israel and Giani Gurecky of Douglas Elliman represented the buyer.
“The ability to move somewhere to reduce taxes was always in the back of my mind. The timing became particularly propitious,” Eisenberg said. His daughter is now in college and Eisenberg said as a public speaker, he could live anywhere.
The December 2017 federal tax overhaul has led wealthy buyers to flock to South Florida. The SALT legislation, short for state and local taxes, limits the ability of taxpayers to deduct such taxes from their income. For ultra-wealthy residents in high-tax states like California, New York, New Jersey, Connecticut and Illinois, the savings from living in a state like Florida that doesn’t have a personal income tax could be enough to buy a luxury home in Miami.
Eisenberg said he was planning to leave his current home base of Chevy Chase, Maryland, for a more favorable tax and weather climate. One of his requirements was to be near multiple airports because he travels 30 to 40 times a year.
Eisenberg estimates that he will save between $35,000 and $45,000 a year compared to moving to a comparable condo in downtown Washington, D.C.
The housing expert, who has called the new housing market “a complete wreck” said the housing market in South Florida is actually doing well.
“It’s unlikely these tax policy changes will get reversed,” he said. “Whatever [condo] oversupply there is now is trivial compared to what there was then in 2009, 2010.”