Defining ‘Affordable Housing’ In Florida
The South Florida Business Journal reports on affordable housing in the state. “Amid worries about a lack of affordable housing for workers in South Florida, there is no shortage of residences listed for sale for less than $200,000. That prompted us to see just what’s on the market at those price points. We found the challenge is picking out a decent property in a safe neighborhood that you can get a mortgage on.”
“$199,000. Palm Beach County: This 1,045-square-foot home was built in 1957 and needs major interior renovations and updating, as little has been done in several decades, its owner said. The house does not have central air condition. But the roof is new having been replaced after Hurricane Frances in 2004. The landscaping is bare bones. ‘I would call it a handyman special,’ owner Bernice Worley said.”
“She owns the home free-and-clear and, after living there 30 years, is selling it for a retirement home in the Ocala area so she can be near her family, she said. Worley said she is willing to wait to get her price.”
“$199,000. Built in 1959, this home is 864 square feet. The interior needs to be renovated. The carpet is worn and stained; the kitchen is outdated. Owner Marlene Ambrose inherited the home from her parents. She is looking to use the proceeds to buy a bigger home in a nearby retirement community. She is willing to haggle a bit over price, but is willing to wait to get top dollar. ‘I am anxious to sell it, but I am not going to give it away.’”
“$140,000. Miami-DadeSeveral are being offered at this two-story, 16-unit apartment building built in 1953. The property was acquired in May 2005 for $1.1 million. ‘Investors Welcome,’ the listing states.”
“However, the condo conversion lies in a Coconut Grove neighborhood with a bad reputation for crime. A couple in the neighborhood said they have complained to the police that drug dealers riding around on bikes often stop to sell crack in front of their home.”
“Built in 1936, the 865-square-foot house last sold for $67,000 in October 2003. The house had burglar bars on its windows. This single-family home listed at slightly less than $200,000 earlier this year; however, the property is no longer on the MLS. The listing agent, also listed as the owner in property records, refused to offer any additional information.”
From USA Today. “As coastal residents nervously await the start of a new hurricane season in June, they’re confronting another fright: the exorbitant price and short supply of insurance for wind damage. Since 2004, insurers have paid $30 billion in Florida hurricane claims, wiping out years of profits here.”
“In Key West, homeowner Teri Johnston’s wind storm premium has more than doubled from last year. The cost this year to insure her 1,500-square-foot home against fire, wind and flood: $14,742.”
“After years of extraordinary insurance rate increases, Johnston, the Key West homeowner, can’t bear the thought of another. ‘People think we live in million-dollar mansions,” says Johnston, president of a homeowners group pushing for lower rates. ‘I’m living in a little concrete block house.’”
“Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
Thanks to the readers who sent in these links.
In Key West, homeowner Teri Johnston’s wind storm premium has more than doubled from last year. The cost this year to insure her 1,500-square-foot home against fire, wind and flood: $14,742.”
“After years of extraordinary insurance rate increases, Johnston, the Key West homeowner, can’t bear the thought of another. ‘People think we live in million-dollar mansions,” says Johnston, president of a homeowners group pushing for lower rates. ‘I’m living in a little concrete block house.’”
“Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
almost 15 for insurance….that can’t be right.
Here we go….now hurricane damage is the problem everywhere and it needs to be paid by everyone….when will all this stop.
Yeah seems really high. At that point you skip the insurance at pay fdor a new roof yourself every 5 years.
You think that sounds high but you think it will take 5 years of premiums to pay for one new roof?
15k is a lot of money. That is $75k in 5 years. I can buy a sweet ass BMW for that. You should be able to put a new roof up for a little cheaper than a sweet ass Beamer on a 1500sqft house. I am guessing a little over one year will pay for a new roof at $14,742 per year.
Ok, I’ll make it a national problem. No more building in barrier islands or flood plains… oh yeah, if you’re under sea level and only miles from the sea? No insurance for you!
No, what I meant is that even if you had to replace the roof once every 5 years due to damage you would still be way ahead.
National problem??? I don’t think Hurricanes are a big concern here in Phoenix. Pay for your own damn insurance…
The home prices simply have to come down to compensate for the higher insurance costs. A national subsidy is just an attempt to support home prices. I say “Let free market dynamics determine home prices”.
“Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
I ain’t paying taxes to subsidize someone to live in Florida.
Especially since half of the ‘value’ is an illusion.
Yeah exactly, yet another reason which equates skyrocketing house prices as just another form of inflation. You can’t keep cheap insurance if replacement costs bubble up. Though this point is lost to 99% of people unfortunately.
Reminds me of jewelry. If you have a diamond ring insured, just for kicks tell the company you’d like to reduce your coverage on the diamond by half. They won’t let you do it.
Amen, brother….
Guys,, just make your checks payable to:
Bigdaddy63
po Box OMFG
Tallahassee, FL 33219
Attn: Insurance scam.
No personal checks please.
Really? So I assume you are not paying for Katrina, Invan,… relief either? As cruel as it sounds, I say we get elect some politicians that know how to count and then account for what they spend. A trillion here and a trillion there and… Sooner or later it starts to look like real $$$$$$$.
And the readers here wonder why the dollar is weak? It’s because our elected officials are weak.
Yes you are.
Federal Tax Burdens and Expenditures — Florida is a Beneficiary State
Florida taxpayers receive about as much federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2004, Florida citizens received approximately $1.02 in the way of federal spending. This ranks the state 30th nationally and represents a decline from 1992 when Florida received $1.08 of federal spending per dollar of federal taxes paid (ranking them 24th nationally). Neighboring states and the amount of federal spending they received per dollar of federal taxation paid were as follows: Georgia ($0.96) and Alabama ($1.71).
I made this post yesterday in another Florida thread, and there were several replies for more info about the exploits of this Massachusetts flipper in Orlando. I took a picture of his flyer (those are my scribbles). Here are the links:
Flyer Side 1
Flyer Side 2
Only one of the houses is what I would call a highly desirable area which could be a candidate for a tear-down, but I think the lot is likely too small.
==
“I live in the Orlando area too. I picked up a flyer yesterday from a home for sale in Winter Park. This is a house on North Park Avenue, which is a desirable part of town, but many of the houses are very old (50s) with carport.
The flyer listed 6 homes for sale (including the Park Ave. home), and upon research at OCPAFL.org, I discovered that a flipper/investor from Massachusetts owned every one of the houses. He’s even advertising “0% down and 100% financing” and “seller will pay all closing costs.”
Here’s a quick rundown:
House No. 1 - bought for $219K in Sept. 2004
asking price: $549K
House No. 2 - bought for $289 in Jan. 2005
asking price: $549K
House No. 3 - bought for $245 in Sept. 2004
asking price: $549K
House No. 4 - bought for $299K in Jan. 2006
asking price: $459K
House No. 5 - bought for $261K in Oct. 2005
asking price: $449K
House No. 6 - bought for $325K in Jan. 2006
asking price $425K
If he gets his asking price (he won’t) he’s anticipating a profit of approximately $1,341,000. (asking price - sales price).
By and large, these are crap 50s era houses with carport (or a converted carport). With the exception of his Park Ave. house (location does warrant a slight premium there), these houses would have sold for $150K or less up until maybe 2002 before prices started escalating.”
Sure look like ugly houses. Hope he chokes on them.
i don’t know if i’m reading this right but he has some mortgages from New Century 3and 5/1 arms with interest rate starting @ 11%
http://oceanus.occompt.com/wb_or1/details.asp?doc_id=27733579&file_num=20060026515&doc_status=V
Wow: Minimum 11.35% - Maximum 18.35%
Buddy — those properties are a real mixed bag. Wonder if he bought them sight unseen. The first one is on Selkirk, down near Baldwin Park. It’s just barely a W.P. zip code. The second, Windsor is in an OK area for teardown, but probably way too early to get that much money. The third — there is no Lakemont Drive, just Avenue, Court and Road. Dallas Ave. has the advantage of walking distance to the WP Village, but not enough for that price; a teardown would have worked if it gave you a view of the lake, but that would take a high-rise, I think. The last one, Staunton, I don’t think is a real Winter Park address and is in a yuck area, IMO — no way he’ll get big bucks for that. I think he might have been shopping by Internet.
I agree with the above posters. Sorry this isn’t a national problem. It’s a local problem. You chose to live in “paradise.” Well, I guess living in “paradise” comes with a big price tag.
I used to live in Florida and chose to leave because of the high prices and low salaries.
Or maybe when you consider all the factors - economic or otherwise - it isn’t exactly the “paradise” that FL realtors claim it is?
I live in Florida — always have. It’s a Florida problem. Earthquakes are a California. Neither are an Iowa problem.
“We need national answers.”
Okay, let’s all pay hurricane insurance based on risk. This would apply nationally. Where I live, based on risk I would recieve an annual rebate in excess of my premiums. That rebate would be paid by people in hurricane zones who need to pay far moer than they are now. Understand, the rates we see now are based on the loses of the 2004-05 season. The 05-06 season isn’t priced in yet.
‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
I’m not living in a warm climate with a view of the ocean in a ridiculously overpriced house - I don’t want to subsidize this lifestyle for someone else.
We live in a warm climate with no hurricanes. We pay about $1k per year for earthquake insurance. Fine with us (SoCal) but do not want to subsidize flood insurance, wind damage insurance, etc. for others around the country.
You choose where you live and make your risk choices accordingly. Live with it!
i almost died in the 94 northridge eartquake and the gov gave fema money which i turned down.other people needed it more than i did.thats the way i am i dont want a gov handout.we in los angeles still pay sales tax for that quake they never lowered it back.im not paying for new orleans or florida why should i life sucks get over it florida is no paradise.
I live in Fla and I’ve been through 3 hurricanes in 2 years. I didn’t take any FEMA money nor did I file an insurance claim. There was some damage to my house but less than the $2000 hurricane deductible. Then I hear about people who’s shingles blew off and they never bothered to tarp their roof so the insides of the house were ruined by the rains that followed. I also know of people who ripped up shingles after the storm and then filed a claim. One guy I know who had electricity bought a generator and then took the receipt to FEMA for the $500 refund. This guy probably makes $80k a year. And don’t get me started about the thousands of idiots who don’t have water or food 24 hours after the storm! They drive their cars to the FEMA staging site and then burn up $10 in gas waiting to get $3 in ice and water. Then they scream about there being no gas at the gas stations. Fortunately, I’m insured through the farm bureau and they have not raised my rates yet. I agree, people in one part of the country shouldn’t have to pay for another region’s risk. I choose to stay here because I hate the cold and I like growing a garden year round. I hope the hurricanes chase some of the people away so the traffic gets better and real estate prices drop. My ex is a real estate agent and she’s hurting. Buyers are scarce and the sellers are in serious debt. I don’t see prices coming down until the banks take over some of these properties and sell them for a loss. What we are seeing is not a short term correction. It is a 5-10 re-evaluation of what a home should cost. The free market rules and Adam Smith’s “invisible hand of the market” is about to bitch slap a bunch of greedy people who thought they could grab some easy money at someone else’s expense.
“Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
I call ‘Bullshit!’ and I live in Orlando. I don’t want to subsidize auto insurance in Cracktown- err.. I mean Detroit and I don’t want them subsidizing homeowners insurance in FL. One of the prices you pay for living near water. The prices will stabilize over time, as markets always do. I’d still rather live here than DPRK. Its still cheaper here and at least I don’t have to worry about earthquakes.
‘140,000. Miami-DadeSeveral are being offered at this two-story, 16-unit apartment building built in 1953. The property was acquired in May 2005 for $1.1 million. ‘Investors Welcome,’ the listing states.’
So they’re asking $2.24 million. How much do you suppose they poured into this place? Mr. Gallagher really expects us to help cover this?
Gallagher graduated from college around 1965, then did a couple of years in the Army. So hid “business career” coundn’t have started before about 1967. His political career started in 1974. This guy is a career politician telling Floridians (and the beaucoup out-of-state owners of, in particular, coastal properties) what they want to hear. Glad his plan for insurance socialism is getting known outside the borders of our state, at least via Ben’s blog.
Wow and Mr Gallagher is a Republican, who would have thought.
Oh thats right, republicans only want to socialize the cost…the profit is private.
Tom Gallagher is an American politician from the U.S. state of Florida. He is a Republican and is currently the Chief Financial Officer of the state. He is running against state Attorney General Charlie Crist for the Republican nomination for Florida governor in the 2006 gubernatorial race.
http://en.wikipedia.org/wiki/Tom_Gallagher
PLEASE…… anyone that actually believes you can live in any residence in south florida that lists for under $200,000 .. I have a bridge that is slightly used I want to sell you and some pet rocks.
There are plenty of condos in south fl for around 55k. Just look on zip. Those who paid 300k, 400k, 500k + are fools for not looking at the local market. Prices in so. fl are now all over the map.
Looking4mee.
Please enlighten me as to where I can find such jewels in the 561,954, or 305 area codes where they don’t have hot and cold running crack and the only people behind bars are the residents.
in the hood. let me list them. in miami dade, south of cutler ridge, west coconut grove. anything from biscayne blvd to the dolphin to the palmetto/red road to the broward county line.
in broward, other than weston, sunrise and plantation, west of pine island and parkland, everything else is the hood. palm beach county: everything east of military, wellington, yes wellington. even west boca has hood condos along 441. miramar and pembroke pines is turning into carol city north. i wouldnt buy a house in most of south florida for 100.000. that is why i left.
and you cant find a house over 1000 square feet built after 1992 and in a crime ridden area under 175.000. people are full of lies.
Mr. Gallagher needs to do a little research about hurricanes to see that they do not apply nationally to all areas. Perhaps, he can get Suzanne to help him research. In Albuquerque, the risk of a hurricane is about zero to none. We are short of water. We would welcome some rain. If I am not in a hurricane zone, I don’t want to pay the hurricane insurance. Like already said, these folks chose to live there and can pay for the risk. It isn’t like hurricanes all of a sudden became a known issue just last year. I have heard of them since I was little (and never lived in such a zone).
Maybe people in FL would like to help with my heating bill.
Heating is not a national problem, just northern problem
‘Emergency manager stress planning over all else, especially because most coastal counties still don’t have enough shelter beds to accommodate everyone who would need space if a major hurricane hit. Gispert marveled that a behavioral study of people who hit the road before Hurricane Floyd indicated that most didn’t know where they would end up.’
‘How dumb is that?’ he said. Usas, the New York transplant, said she and her parents, who live nearby, have taken the warnings to heart, stockpiling water, canned goods, flashlights, batteries, a radio and other emergency supplies. Some of her clients moving from out of state ask her about her own hurricane experiences, she said, but ‘they don’t seem overly concerned.’
‘Ninety-nine percent of the time, Florida is beautiful and the place you want to be,’ Gispert said. ‘But you’ve got to pay attention. It’s not rocket science.’
Completely OT, and I apologize, but I have been trying my darndest to figure out this currency market on my own. Could someone explain two things to me please:
1) How the heck do I understand this, primarily the dollar’s strength (or lack there of)
2) What would another increase from the FED in June do to the value of the dollar on the world market?
Thanks to whomever helps.
A weak dollar means foreign goods, and foreign travel cost more to Americans.
Thanks Karen, but that much I knew. I am particularly interested in how one would read the pairings on the link I posted and what first and second numbers are. I think the first number is the exchange rate but I have no idea what the second number is.
Looks like the bid and ask price. The second number is just the cents.
Second number after the slash is the bid/ask spread, in pips. The first number is the base/counter currencies ratio; 1.27 USD/EUR means 1.27 USD per one EURO. If this number goes lower, USD is strengthening, if higher - weakening.
thanks max. very succinct
I just dumped my India funds (the world markets are tanking). I am buying funds that hedge againest the usd. I am having 2nd thoughts on that much like you are. The funds that bet againest the usd seem to be all over the map.
Dude, the site in your link has a free practice account as well as tuturiols.
This table is relation ship between Two currency . The names of currency are in short form. (First column). The second entry says 1 unit of first type = how much of the second type. The Third column says if that number has changed by what percentage. If Negative, the color is RED.
Hope I got it right..
The first: name of two currency
The second: 1 unit first=how many unit of second
The third: The percentage of change, If the second number has changed from previous day
RED color means change is negative, First Currency is Weak
Florida = manufactured “experiences” (a.k.a. ‘theme’ parks), asthmatic killing humidity, “palmettos” the size of hot wheels (a.k.a. cockroaches), grey haired, Alzheimer’d 80 year olds driving their white Sedan de Villes at 25 mph in 50 zones, but 50 mph through business plate glass windows and into crowds of people…….I can go on and on…..
How dumb are the majority of the residents? The only way I would EVER contemplate living there is direct waterfront and bailing north for the summer. Oh, and if YOU do, you NEED to factor in possibly a complete write off of your RE OR pay the real price for homeowners insurance….
1000 people a day can’t be wrong!
Years ago my father had moveable building for sale - basically huge timbers running the length of it. His ‘price’ was about double what any rational person would pay, and after several low offers I tried to reason eith him on the price. He basically said he’d rather burn it down than give it away. After a couple years of storm and all, he almost did give it away (and he probably should have burnt it down.) I hear the same music hear - one good hurricane and it’s ‘please take this off my hands!’ Sad.
Spell check! Spell check!
to some extent all US taxpayers already subisdize coatal development:
“Taxpayers subsidize coastal development in a number of ways. First, state and federal funds are used for rebuilding infrastructure (roads, bridges, etc.) after coastal storms. Even small storms that don’t damage well-constructed houses often require millions of dollars to repair the infrastructure. Additionally, federally managed flood insurance provides below-market coverage for flood damage to coastal homes. And on top of that, state and federal governments fund beach-replenishment projects, which are justified primarily by the value of coastal development that they protect, not on recreational value.”
Here’s the whole article:
http://www.agiweb.org/geotimes/feb06/comment.html
Did you guys hear about the earthquake in Baja California today? 5.4
I guess it was yesterday.
5.4? Yawn. You realize a 5.4 only rattles dishes?
Its not worthy of news outside the local area unless they become common.
You’re talking to someone who is scared of earthquakes. I know, so why the hell am I here…
5.4 is nuthin try a northridge at 7.4 reduced by bill clinton to 6.7 so the feds wouldnt have to pay so much. i know i was at ground zero reseda and parthenia.
I was in West Hollywood at the time and GOD D@MN! THere was NO WAY that was in the 6s. I would sleep through 5s. That threw me out of my bed and my 10 foot bedroom metal blinds were slapping the ceiling - hard and giving me a view of the tranbsformers blowing out all throughout LA basin.
I WH we suffered a gas leak and a house was thrown off its foundation.
The valley were you were was worse.
They lied. Conspiracy!
Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’
We have a national system already, and it is financed by the premiums of homeowner’s nationwide. The additional premium that one pays is based on the estimated pay out on items including catastrophe.
It’s called the insurance market.
OT slightly, but speaking of waterfront: “Never Underestimate the Power of the Waterfront” is the new banner for San Diego’s downtown planning commision. I guess they must be planting trees that grow money along that waterfront?? I wonder if they do that in Florida too??
http://www.ccdc.com
Robert Cote, do you have any incite on this topic? Have you ever been down to the CCDC office? I think we should force them to print lists of stalled and cancelled projects. We could go to their public meetings and cause quite a scene.
“She owns the home free-and-clear and, after living there 30 years, is selling it for a retirement home in the Ocala area so she can be near her family, she said. Worley said she is willing to wait to get her price.”
Hey Mabel, by the time you get to Ocala, 100 more got there before you.
lack of affordable housing for workers in South Florida,What workers? the workers that where replaced by immigrant workers, or just the immigrants, hurricane insurance cant cover the 140% markup on shacks without the exorbitant price, if you build on a sand bar Dont cry when the sand gets washed away, Florida 1920s is proof it will happen,
Thanks Ben, I needed a good laugh today and I got one in reading the SoFLa bizjnl listings of “affordable” homes. The Miami area homes for under 200k are all in drug infested ,crime ridden, stray bullet flyin’, hood areas. Not likely that the neighbors are employed either. What a paradise.
This turd needs to be voted out of office. I posted about this on my site.
http://www.sun-sentinel.com/news/columnists/sfl-mayocol23may23,0,6168746.column?coll=sfla-news-col
“Florida Chief Financial Officer Tom Gallagher, the state’s former insurance regulator, advocates a federal catastrophe insurance plan financed by homeowners insurance premiums everywhere. ‘This is a national problem,’ says Gallagher, a candidate for governor. ‘We need national answers.’”
BULL!!
Your hurricane losses are your state’s problem. So implement a state income or residency tax to build a state disaster fund. Stick it to the folks who’ve chosen to live there. They need to assume the risks along with the lifestyle.
I can see the Feds helping people in disasters - but choosing to put oneself in the path of predictable, recurring catastrophic forces of nature is simply stupid. Your poor planning is not my disaster.
I think there is a good chance the 2005-2006 insurance rates for Florida have been factored into the current rates. The insurance companies are not naive and read the tea leaves like everyone else. I own a significant amount of property here in FL and I spend a few hours on the phone everyweek just trying to get (or keep) coverage.
You CAN get coverage but you will pay and sometimes dearly (actually most of the time). I had a Loyds of London policy on my office until recently and it was strictly bare bones. I have since changed carriers but had to go with a “B” rated carrier because my office is frame construction and was built prior to 2000. I lease an office to the regional Farm Bureau claims center. These guys are well aware of what has been forecast for the next decade or so. In some places you can’t even buy insurance so I’ve been told but I’d venture to say they didn’t try the Loyds route I went. It can be had but at a price.
To hell with any subsidy, let the market do its thing and settle where it may and this is coming from a guy who has over 100k sf to keep insurance coverage on. I am in complete agreement with the ancedote that the farmer in Iowa should not be subsidizing someone living on a barrier island (which is just another word for a sandbar). It is kicking me in the ass right now but I am a true believer in the free market.
FLreappraiser