Mortgage rates and the housing market

[#UnleashMalik]

You're super weird, no cap. Malik the male nurse. lol

Wow, what a joke from 1976. So manly.

 

Nazis also believed in male/female only "jobs"

[#UnleashMalik]

Also, you play pickle ball. I cant think of anything more lame.

Edit: competitively 🤣🤣🤣

[Jay Bee]

Wow, what a joke from 1976. So manly.

 

Nazis also believed in male/female only "jobs"

Word, Nurse Mally. You the wo-man!!

[#UnleashMalik]

Word, Nurse Mally. You the wo-man!!

It's a pretty sad thought that you think that!

[dgies9156]

From the Wall Street Journal:

The Sunshine State used to be where all walks of life could afford to retire, but now, wealthy individuals make up a growing share of people at or near retirement age arriving in Florida from other states, according to U.S. Census Bureau data.

For many working- and middle-class people, the decades-old promise of an affordable sun-drenched sanctuary is fading in the face of high home prices, insurance premiums and property taxes, among other costs.

https://www.wsj.com/real-estate/luxury-homes/the-dream-of-a-florida-retirement-is-fading-for-the-middle-class-a29a5687?mod=djemwhatsnews

Just another example of the many hurdles facing the middle class today. Those aspiring simply to reach middle class are doing even worse, as the poors are being more dumped on than ever.

But on the plus side, there's never been a better time to be a billionaire!

OK, Florida residents understand there are a myriad of reasons why housing costs have increased substantially. Among the most severe are:

1) Insurance -- This is a killer. A policy that cost me $1,500 in Illinois is more than $6,000 here. That's despite living in a concrete bunker with 150 mph impact windows and a roof that a nuclear bomb couldn't separate from our house. The reality was that before Hurricane Andrew, most Florida insurance was underpriced relative to risk. It's probably overpriced now but that's what it takes to get carriers to underwrite here. Our state has created an insurer of last resort but this risk requires a very expensive price.

2) HOAs -- Many HOAs underpriced regular assessments relative to capital needs and replacement. After the Sunrise collapse, our state stepped in and required inspections to ensure HOAs were doing their jobs. The result was identification of massive amounts of deferred maintenance that required remediation, for which funds did not exist. Boards either hiked annual assessments or had humungous special assessments.

3) Demand -- The market demands different things in home today than 10 or 20 years ago. Top end appliances, granite countertops, high-end cabinets and a host of other things have have affected housing affordability. Add to that some of the toughest building codes in the country and homes get expensive.

4) Debt -- While not a direct contributor to localized affordability, more and more senior citizens are mortgaging their homes for one issue or another. The result is that while a hypothetical home in Long Island, NY might once have generated net proceeds sufficient for a downsized home in Florida, if debt that must be repaid, buying power on the Florida back-end is a lot less. A decade or more ago, one could buy here on a barrier island for around $450,000 and the buyers, after sale of their northern house, would be free and clear. Not the case anymore!

In fairness to our government, they have taken on the insurance industry in recent years. I'm expecting some drop in premium in the next year. The fact that John Morgan of Morgan & Morgan dislikes our governor probably is enough for me to believe our state has done something right. Also, for homesteaded properties in Florida, our legislature is expected to tackle initiatives that will severely reduce or eliminate property tax!

[Scoop Snoop]

Your governor is very dislikable, so I am with John Morgan on that point.

[MUBurrow]

Insurance -- This is a killer. A policy that cost me $1,500 in Illinois is more than $6,000 here. That's despite living in a concrete bunker with 150 mph impact windows and a roof that a nuclear bomb couldn't separate from our house. The reality was that before Hurricane Andrew, most Florida insurance was underpriced relative to risk. It's probably overpriced now but that's what it takes to get carriers to underwrite here. Our state has created an insurer of last resort but this risk requires a very expensive price.

Didn't know Florida was going communist.  SAD!