Unlike previous generations who could look to equity in their homes as a source of economic stability, the worsening economy has thwarted many baby boomers plans of an easy retirement.
In the past retirees could look to their homes as a source of equity with which to retire and somewhat live off of, along with the help of Social Security monthly income.
It has often been debated how long Social Security will last as the baby boomers near retirement. The larger problem however will be how baby boomers will survive as home values decline.
U.S. populace data reveal there are 77 million Americans born between 1946-1964. It is believed that up to one-third have no retirement savings whatsoever. Among them the oldest are 61 years of age. Among this third without retirement savings, the only money they have is equity in their home.
If they don't continue working to sustain themselves financially, as many are opting to do, many will be forced to sell their homes. This combined with a home builder surplus and a bleak economy with an unprecedented amount of foreclosures, will further flood the market with homes up for sale.
One good thing about this economic upheaval is it will bring families closer together. When my parents began to age, my sister and her husband moved in to live and care for them. This not only helped my aging parents physically in their old age, but also helped bear the economic burdens associated with home ownership.
As baby boomers age and retire, families will either need to pull together (often under the same roof), or boomers will be forced to sell to sustain themselves financially. My son cared for his maternal grandparents in their old age, which enabled him to keep their home versus sell it to pay for them to live in a nursing home.
Ironically whereas financial stress is a big destroyer of marriages, alternatively as it pertains to the extended family and baby boomers approaching retirement, declining equity and the trouble it causes may lead to boomers not being abandoned in their old age.
While losing equity in one's home is not exciting, the possibility of boomers having to sell their home may be a sufficient incentive for families to care for their elderly. This simultaneously would both save the home and the family.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
Empty houses all around across Central Florida reveal builders plight as they are being forced to drop prices even faster than homeowners. Builders unable to sell their excess inventory are hustling to dump homes at lower prices and are doing whatever they can to hurry up and unload before prices go further south.
My daughter who is an interior designer and home stager is getting an unprecedented amount of work from builders scurrying to improve their homes any way they can to make them more attractive for sale before the housing slump worsens.
Bloomberg reported on December 26, 2007: "Home prices in 20 U.S. metropolitan areas fell in October by the most in at least six years, raising the risk that more Americans will walk away from properties that are worth less than they owe. ...Residential investment has subtracted from economic growth for the past seven quarters. Home building dropped at a 20.5 percent annual pace in the third quarter, the most since 1991."
The S&P/Case-Shiller home-price index showed values fell a greater-than-forecast 6.1 percent from October 2006 - the biggest decrease accounted for since measurement began in 2001.
Record foreclosures putting even more homes on the market lead many to believe prices will continue to further decline. Furthermore stricter lending rules will make financing more difficult to obtain and likely cause consumers to hold tightly on to their cash. The danger and risk to homeowners is declining property values will mean securing cash via equity lines will become more challenging.
As the economy's long-term prospects get worse, expect housing to further weaken. Any talk otherwise by the media and financial forecasters is just hype intended to delay fear of the inevitable.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal: <br>
The U.S. government and corporate media don't talk about how lower house prices are good for home buyers, preferring to sacrifice we the people and families to make sure bankers have plenty of debt to earn interest on. Nevertheless pure and simple economics says lower prices of anything is good for buyers.
Realtors who earn commissions on transactions are quick to say anything to keep the buying and selling going, particularly when there is a sweet commission check involved for them. Yet for homeowners whose properties are declining in value, now is not the time to sell. Moreover losing equity in your home as prices fall is not something which makes for a happy new year.
President Bush's plan to freeze banks teaser rates will likely backfire and produce the reverse effect, meaning banks will stop lending entirely because they cannot be sure that legal contracts will be honored. A freeze therefore will increase uncertainty among bankers and cause them to chill out before making loans considering their risk for doing so has increased.
"Affordability programs" seemingly are meant to help the poor get a new home, often with the help of HUD. However as it pertains to the economy, this potentially has the effect of driving prices higher by locking out more middle-class people. Fannie Mae and Freddie Mac undergird bankers risky loans and step in when borrowers don't pay and anything hits the fan.
The trouble is many buyers borrowed too much money and cannot pay the interest. Foreclosures are now occurring across the country. Meanwhile in Orlando we've got thousands of homes on the market for sale.
In Orange County and across the country, banks happily loaned money provided that the banks could then sell the loan, diverting the risk on to Fannie Mae (essentially and ultimately we the taxpayers) or on to buyers of mortgage backed securities. As the market now adjusts itself to account for years of excess and a trillion dollars in mortgage loans that will not be repaid, Fannie Mae is becoming very cautious and trying to avoid buying risky loans. Simultaneously and understandably investors do not want to buy mortgage backed securities.
This translates into less money available for mortgages, which immediately results in less home buyers. Therefore expect housing prices to continue to fall as mortgages become more difficult to get.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
The surplus of speculating investors who cleverly learned how to leverage leverage OPM (other peoples money) and work the system, is now backfiring throughout the market and circling back around to correct itself.
A fourth of the homes bought across the nation the last few years were purely speculative for profit and not bought to be lived in by buyers.
One car dealer I know who owns several rental properties is eating it big time and losing money. He recently told me that after he accounts for property taxes (which in a year may for the first time go down), improvements, and maintenance to care for the homes he rents; at the end of the day he's losing money considering the amount of time invested to do all of that.
Speculative investors like him are going into foreclosure in massive amounts. The National Association of House Builders has acknowledged that "Investor-driven price appreciation looms over some housing markets."
One of the reasons the housing crash continues across America is fraud pure and simple. It is not uncommon for speculators to take out a loan for up to 50% more than the price of the house he intends to buy. Of course you've got to find a banker to play along, which usually only happens when the real risk can be directed to Fannie Mae and Freddie Mac should anything get nasty.
A key player is the appraiser, which if he has no scruples or conscience, can be swayed to go along with the inflated price. Bankers know how to send a clear message to appraisers that if they don't play along, they won't be getting called back to do another appraisal. A compliant appraiser therefore can be the hinge upon which all of this inflated pricing swings.
Once the loan has been approved and is in hand, the speculator then pays the seller his asking price (much less than the loan amount), and takes the leftover money to make mortgage payments on the astronomically large mortgage until he can find a buyer willing to pay his upwardly adjusted price to ensure him a profit.
What sometimes worked great for bankers who could find trustworthy borrowers and collateralize the loan with the home, also proved deadly when the shady speculator took the extra money and left the country.
Not to worry. When bankers make bad loans (with the help of property appraisers), Fannie Mae and Freddie Mac can bite the bullet when it gets ugly (thanks to we the tax payers). That is until Fannie Mae and Freddie Mac become more selective at which loans they buy, which when that happens (which it is now) will correct the real estate market excesses occurring for the last three decades.
Perhaps if Fannie Mae and Freddie Mac were eliminated altogether a true and fair market economy could take effect and truly bring inflated real estate prices down to where they belong.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
The Florida Growth Management Initiative Giving Citizens the Right to Decide Local Growth Management Plan Changes is a wonderful referendum sponsored by the Floridians for Smarter Growth, Inc. under Chairperson Clarence Anthony (Tampa, FL). Article II, Section 7 provides for the voting upon this referendum by voters in the 2008 general election. It allows Floridians to call for voter approval of changes to local growth management plans through a citizen petition. Voter approval of growth management plan changes will be required if 10% of the voters in the city or county sign a petition calling for such a referendum. Defines terms and establishes petition requirements.
This is a call for local citizen activism, which begins at the 2008 voting precincts. Once we the people of the state of Florida pass this referendum, we must begin grass roots efforts within our cities and counties to collect the 10% of the voters signatures on the petition. Remember the growth management planners aren't going to make this easy for us as they aren't going to want to release their power that easily. We therefore must take the initiative to collect the needed signatures to reach (and I propose exceed) the 10% requirement.
Those cities and counties that remain passively disinterested will forego a great opportunity to have a say in their community growth management plans. Unlike most initiatives this one requires more than a vote at the 2008 general election but activism thereafter by the people of each city and county across the state. Wouldn't this be a good thing for democracy in our country!
Imagine if we could be more involved in growth management planning and have a say in what corporations come into our cities. Corporate welfare as we know it could also be thwarted and cozy relationships with urban planners brought into daylight for all to see. Instead of only the insiders knowing the next phase of development, the people taking an active role in the city and community could also be on the cutting edge and in the know versus on the sidelines waiting and wondering. We the homeowners and residents of our respective cities and counties need to rise up and take the initiative in charting the course of urban development and growth management plans, lest we be overtaken and ill effected by decisions made without our approval.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
Conservation and protection of Florida's scenic beauty should be a top priority for homeowners unless we want our home values to plummet as the state becomes billboard central. I don't think any Florida homeowner desires their neighborhood to look like Time Square in New York City full of advertisements as far as the eye can see.
The Conservation and Protection Initiative: Florida's Billboard Amendment is a good thing for homeowners as it restricts intrusive billboards and protects trees on public property from being removed or altered to enhance billboard visibility. Our environment and natural beauty should be prioritized over the visibility of billboards, many of which don't advertise wholesome things anyhow. Strip clubs, ambulance chasing attorneys, and annoying messages don't need to be spread out across our cities and towns by billboards. Let them find other ways to generate business without destroying the natural beauty of our neighborhoods and streets.
Article II, Section 7, shall be voted upon in the 2008 general elections in Florida. This bill will provide local governments with greater home rule authority to require billboard removal. Where just compensation for billboard removal is necessary, this bill places a ceiling into effect except where greater amount required by federal law or federal constitution.
Most importantly and something that should have been put in place a long time ago is this bill prohibits new billboard construction along any public street or highway. It sure would be nice to have our streets and highways back free from billboards full of annoying advertisements and graffiti. No billboards means no graffiti to spray on them. Imagine if society went back to good old fashion word of mouth advertisement. Life would be more relaxing, business relationships more cordial, and our cities more beautiful.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
An initiative on the Florida, 2008 general election ballot is a bill to make hurricane insurance as a local property taxing authority at market value. To me this seems very dangerous because it basically passes on to every homeowner, whether they want it or not, additional insurance costs related to hurricane prevention.
Most of us don't have million dollar homes on the beach, so why do we all suddenly need hurricane insurance other than to make insurance companies wealthy or cover their potential losses. Remember insurance companies soak homeowners with premiums, which are precisely to pad their coffers so when the odd disaster occurs they can cover us. Why than do we need to provide more corporate welfare to insurance companies by way of this mandatory hurricane insurance initiative? It just doesn't seem right.
My initial thought was somehow the rich living along the coast woud gain from all state homeowners bearing the burden of hurricane insurance. It certainly would be desirable for beach homeowners to pass on some of the hurricane insurance burden to others across the state of Florida. Yet upon further investigation I discovered that this bill has a huge exception in Coastal Barrier Resource Areas making such properties therein "ineligible" of any such hurricane insurance.
That being said it kind of reveals the true motive of the initiative. It obviously isn't interested in seeing that all property owners are insured in the event of a hurricane because coastal area homeowners are ineligible. So basically the hurricane insurance bill is a clever way for insurance companies to purport to care for homeowners and be looking out for us, when nothing is farther from the truth. What this bill does is make clients of all homeowners and collect fees for hurricane insurance from those in the least hazardous areas.
The problem is with this being a "market value" annual assessment, we can expect with a pro-inflation national government that the fees for hurricane insurance will keep going up and never stop. Ironically the initiative proposes that the hurricane insurance assessment to be imposed upon homeowners across the state be a "market value," while at the same time they are removing the freedom of choice for consumers from the market. Suppose a homeowner in an area of Florida where a hurricane has never before hit doesn't want to pay for this insurance? If this bill is passed refusal is not option because like it or not we all pay.
I think homeowners ought to be able to choose whether or not they want to pay for hurricane insurance rather than the state making it mandatory. The poor might prefer to feed their children rather than pay additional property taxes for hurricane insurance.
Of course I can hear the rebuttals as to protecting Florida residents most valuable asset - their homes. Yet shouldn't we the people be thought intelligent enough to care for our own property and insurances without governmental intervention? I am always skeptical when suddenly the government claims to be looking out for me. Particularly when those who stand to benefit most are the insurance companies who simultaneously are denying any coverage to homeowners in coastal areas.
Insurance is good in and of itself. Having to pay additional property tax however to get hurricane coverage is not and should be optional not mandatory. Keep the government out of homeowners pockets and vote no on the hurricane insurance initiative.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
The average citizen and resident of the State of Florida knows little if anything about legislation and initiatives currently being proposed to greatly alter their lives. When I found out about the Save Our Homes Amendment, my first reaction was that on its face it sounds good.
That however is the danger as special interest groups (and the legislators serving them in return for...) often use clever language to conceal and obscure their true intent and what they desire to accomplish. Nowadays the powerful serve themselves, not we the people. Therefore we the people must be all the more knowledgeable, studied, and astute.
When I wrote the chairman of the Save Our Homes Amendment who pioneered the legislation, Lee County Property Appraiser Ken Wilkinson, I was pleasantly surprised when he wrote me back within a day. What however was a bit disheartening was when I asked for the direct link to the legislative amendment itself, Mr. Wilkinson only provided me a link to the petition.
Nevertheless I read the petition, which on its face sounds good for Florida homeowners (especially those who would like to move elsewhere in the state and buy a new home). What troubled me however was the last sentence on the petition, which reads:
"Thereafter the new homestead property shall be assessed as provided herein."
That being said, how come nothing else was written or provided therein pertinent to that clause? What is coming hereafter that we homeowners need to know about?
Omissions and distortions are the modus operandi of slick tongued legislators not desirous of letting we the people in on their true motivations. Purporting to serve the people, they talk sweet but the rest that remains to be seen is always yet to be discovered.
Here are some of my recent discoveries (and the search and rescue of the Florida homeowners continues).
John Sebree, Vice Pres. of Public Policy for the Florida Association of Realtors, recently wrote my sister saying:
"The calculators you are looking at are not taking into consideration the revenue cap on local govt ad valorem taxes that can be collected from this point forward. Personal income has increased an average of 4.2 percent each of the past ten years and the Gov just signed a bill that limits the amount of taxes a city or county can collect to that same personal income growth factor. That is a point the media refuses to acknowledge."
So in other words there is a move to not "limit" property taxation to annual 3% increases, but move it up to the new Governor approved and permitted 4.2% now allowable.
Mr. Sebree further wrote: "The US Constitution would prohibit portability in the way we want it. It appears portability would violate the US Constitution's 'right to travel' clause. We are working on a way to make it constitutional and that can be added in."
The million-dollar question however is who is "we" -- certainly not the taxpaying homeowner. I dare say "we" is the tax assessors and county property appraisers working for them.
Mr. Sebree assured my sister in her 50s who can't afford to move and pay in an enormously increased tax bracket on a new home: "If you stay in your house forever you are still protected under this new language (as you said, assuming it even makes it on the balot and passes). The amendment as written grandfathers you in so you never lose your Save Our Homes if you stay."
Why than is Save Our Homes not saying that? The "if you stay" part is huge for homeowners across the state on a fixed and limited income who can't afford massive taxation increases on their home. Consider the retired elderly, ill, single-parent, and those who are unemployed. If the elderly or ill need to move closer to family for home health care; the single-parent marries and moves elsewhere; and the unemployed relocates to take a job---either of these scenarios means much higher property taxes and the elimination of the 3% cap.
This therefore becomes a huge deterrent for the above mentioned when economically, medically, occupationally, and maritally considering their options.
My guess is those behind this legislative amendment are preparing to move into a new home and/or relocate to their dream houses before the property tax cap is removed. While the "super exemption" may help a bit get folks into a home, after 5 years in that home expect the taxes to increase dramatically. That isn't being understood by most people.
Other legislation less heard about to be aware of which further reveals the true intent of the state of Florida and where we are heading is:
ARTICLE VII FINANCE AND TAXATION, SECTION 4, SECTION 6
Homestead Exemptions shall be indexed, removed from Flood V Zones and Save our Homes repealed 07-04
Beginning in 2007, or the year after the property tax exemption was enacted, homestead shall be indexed. "Save our Homes" assessment cap shall be phased out over 10 years. Residual "SOH" cap shall be fully portable only during phase out period. Flood V Zones property shall not be available for property tax homestead exemptions. Properties in Flood A Zones shall have annual exemption increases limited by 1/2 index.
This is being sponsored by the Hurricane Insurance Creation out of St. Petersburg, chaired by John Jeffrey Lane. The sponsor of the initiative alone should be sufficient to alert you as to who are the beneficiaries of such an amendment.
The Hurricane Insurance Creation is pushing to get hurricane insurance incorporated into homeowner property taxes and thereby "flood the market" with their policies by reason of the private-public initiative. Interestingly, they are simultaneously pushing to pull the former Save Our Homes property tax cap. If this goes through, the insurance industry wins big and homeowners suffer monumental losses annually.
If you don't read the amendment now and vehemently speak, soon we the homeowners will weep! ARTICLE VII SECTION 9. SECTION 19. ARTICLE X SECTION 27
Hurricane Insurance as a Local Property Taxing Authority at Market Value 07-03
Create Hurricane Insurance with component flood and windstorm perils (FHW) that shall be written by the State on all Florida properties whether municipal, public residential or commercial, except in Coastal Barrier Resources Areas or other "Properties Ineligible". All properties except "Properties Ineligible" shall have vouchers and separate accounts. Hurricane Insurance shall be a local property taxing authority and part of the annual property taxes.
Remember the government doesn't love us as much as they say and ambiguity is the tendency of special interest groups (and the legislators they buy to favor their cause) proposing initiatives that really aren't in the best interest of we the people.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
Florida lawmakers may have passed revolutionary property tax reform amendment (if the voters approve), or maybe they are setting the stage for the privatization of education and our public services.
Many homestead property owners find they are unable to downsize or relocate to a new residence because purchasing a replacement property starts a new assessment and tax basis at current market values. Portability enables relocation while, at the same time, retaining the limitation on assessed value. Many Floridians who want to move say property taxes are a major obstacle and feel trapped.
The Legislature will give voters the option in January to approve a state constitutional amendment that would give voters the choice of tapping a new super homestead plan, which protects as much as $195,000 of a home's value from taxes, or sticking with Save Our Homes. Opponents say the same vote also will basically serve to phase out Save Our Homes, which has capped property tax increases for homeowners at 3 percent a year. That's not a good thing for homeowners.
Ken Wilkinson, the father of the original amendment and the property appraiser for Lee County, now heads a statewide group called Save Our Homes Portability Inc., which is paving the way to try to transition from the old Save Our Home amendment with a twist that lets homesteaders relocate elsewhere within the state without giving up all their tax credits.
"Save Our Homes Portability" would allow homesteaders to "bring forward" up to 50 percent of the difference between the assessed value and the market value of their home when downsizing and subtract it from the market value of their new home. When "up-sizing," homesteaders would be able to protect up to $400,000 in property value from taxation.
Local legislators agree the rollback is a good thing. On the rest of the proposed reform package, there is less agreement. Cutting millions in property tax revenues will definitely lead to a reduction somewhere in public services or the quality of education (as if that could get any worse).
This move could open the floodgates to more dangerous privatization of services and education. Prisons across the country are already being privatized and prisoners used for cheap labor. International water barons are already eyeing our nation, making promises to reduce local and state governments' expenditures and promising increased "efficiency". Enterprising private industry is making deals with politicians to procure and manage our water supply. Our most precious resources need to be protected and not sucked dry.
Saving dollars on property taxes is good providing over the long-term the economic aftereffect won't be detrimental and devastating elsewhere. Hopefully the passing of the new Save Our Homes (and homeowner party thereafter if approved) won't mean we have to pay big-time later. Nevertheless for now we the property owners can vote for Save Our Homes tax savings and hold our breath to see what happens later.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
Local governments are being hit with a heavy economic burden with the slowdown in residential real estate. Sizeable reductions in new home construction and demands from the state of Florida requiring local governments to cut back their budgets are taking their toll. Fewer permits being pulled for new home construction means less revenue for local governments. Local governments therefore are hurriedly trying to find ways to make growth pay for itself.
Raising impact fees on all new construction is the first way local governments are responding. Local officials have tried to make development pay for itself for years, but the Home Builders Association and Realtors Association always seem to have an increasing effect on what public officials finally decide to do. This holds down fees based on what the counties paid experts tell them.
I know that navigating through these competing demands is like walking a tightrope since neither side really knows what the real effects may be. What however we must ask ourselves is if growth and the associated fees were really paying for the impact growth places on our infrastructure (roads, sewer, water, garbage, electricity, and probably most noticeably schools), than why do these items seem so congested, fees continually increase, and our schools remain over crowded?
Impact fees are certainly not keeping up with nor paying for this growth. Hence these fees continue to rise. Honestly, the best thing that some of the fastest growing counties could do is put a moratorium on building -- especially on residential building. This would give counties a moment to regroup, reflect, and figure out what is best for the existing people already living in their region.
Counties need to go back and reassess the viability of their growth management plans. Until counties can get a better handle on enforcing their growth management plans, they need to place moratoriums on all new residential construction.
Though moratoriums cause resentment from private land owners and others, the counties would benefit from them for a time. The economic slow down in residential real estate is certainly one argument that can be made for not needing to place moratoriums. Nevertheless at the very least counties need to increase their impact fees to the original amounts their paid experts told them they should be. An increase in impact fees will help existing homeowners values rise and thereby increase property taxes to help counties financially until the huge inventory of unsold homes are bought.
Counties need to be proactive when setting appropriate impact fee amounts rather than being overly influenced by those in industry who are merely profit driven. Growth management plans that come from county and municipal governments free from outside manipulation or coercion best serve the people living in the region.
Paul Davis is Central Florida's favorite and most reputable property appraiser frequently called upon by banks, homeowners, and savvy real estate investors to assess property values. A builder for over twenty years and also a real estate broker, Paul Davis brings a wealth of knowledge to the table as an appraiser.
Paul's company Midstate Appraisals serves Central Florida (Lake, Orange, Seminole, Osceola, Sumter and Davenport in Polk counties).
Contact Paul Davis and Midstate Appraisals for your next appraisal:
Paul Davis
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