Real Estate: Is Palm Beach the New Yachting Capital?

Hello all,
Joining this thread a little late, but let me throw in my $.02.
There is so much housing inventory here in Palm Beach County, I'm hearing developers of new communities are holding off building, since buyers are not coming in droves. The past two hurricane seasons did us in, as in it stopped or severly slowed the influx of new residents from other states, and bang our homeowners insurance, where it has gone through the roof (mine went from $3200 last year to almost $7,000 this year, and I have never put a claim in, did all repairs last year myself, out of pocket).
The uphill climb of values the past few years is killing those that did not get out as our value has increased also and properties are appraised every year (not every 30 years, like on Long Island). CTDave is right, if you have some spare change buy up some realestate in Riviera Beach, since I think, it will be much more valuable in a few years.
For me, I'm sitting on my house (although we have considered downsizing), my variable mortgage doesn't start changing for another 5 years, and I need to get the kids through high school. I will tap some of the equity of my castle to pay down some outstanding credit (and take the writeoff on the mortgage interest). But if you are thinking of moving down here to paradise, it is a buyers market, but the living expenses will bite you.
Capt Tom

Hi, Carl.
If this article holds true, this only means there is still HOPE that you can get the property you like, at a Good Price.
GOOD LUCK!
Arnie

With my family in the realestate market just north of Palm Beach in St. Lucie county, they tell me about a lot of ocean/intercoastal side new build houses and condo's that people have bought to flip and are now stuck with them becuase the market is flooded. There are some very good deals to be had with these people trying to get out from underneith there morgage. Some want to sell for less than they paid for there pre-construction price to save there credit. If any one would like some contact #'s please send me a message.

There's another storm brewing, a tropical depression (sorta speak)... it might hit Florida harder then a hurricane.

Snowbirds (non-homestead) flocking from Florida...

http://www.sun-sentinel.com/news/lo...birds,0,415622.story?coll=sfla-home-headlines

New home buyers shut out. Can't qualify for mortgages due to taxes & insurance...

http://www.palmbeachpost.com/business/content/business/epaper/2006/10/01/m1a_PRICED_OUT_1001.html

Carl,
I just read that story this morning and think that FL may price snowbirds right out of here, into GA and SC. I don't get the point that snowbirds will be shouldering the cost of services, and have seen a rise of 174% in tax bills over the past 5 years. Where the heck is all the money going that the municipalities have been collecting from all of our inflated tax bills? The cops and firemen did not get a 174% raise? FPL rates haven't gone up that much (although it feels that way). These cities, munis, counties have got to have a pile of money they are sitting on due to the explosive property value growth, and the fact that you are reassessed almost yearly.
Perhaps we need to change the Homestead Exemption and include anyone who owns proprty here, to help preserve our resources. Hey, I don't like it any more than others when we have the snowbirds, Q-tip heads, whatever you want to call them, here for the winter. But of they bail out, what happens to our infrastructure? That much more property on the market, less jobs for those that assist them, less $$ floating around the businesses, etc.
Capt Tom

"A hard rain's gonna fall..."

That's right, Bob.

The latest (Oct 2 issue) of Barron's, p. 44, 'Florida's Housing Hurricane' has more to make your socks roll up & down:

"Like the now legendary Perfect Storm, Florida real estate has three groups interacting to feed the market with inventory--builders, speculators, and traditional sellers.
The speculators initially undercut the builders, but now the builders are leapfrogging the speculators to unload inventory. With prices crashing, speculators who can do it are walking away from substantial deposits. The recent round of cancellation reports from builders will continue to grow, and some builders will report negative sales, as they experience more cancellations than sales. So the perfect storm ramps up, as builder inventory grows and the main force of buying in recent years, the investor, has dried up. What's the role of traditional sellers? Their ship is the one that capsizes with all hands lost".

Nice nautical nuance there.

Folks like Carl are licking their chops waiting for that 'WalMart Moment' when this thing really goes into the toilet. Cash is king.

A major ramification will be the hordes of contractors, sales agents, suppliers, mortgage brokers, insurance agents, title-insurance writers, home inspectors, and attorneys ( I like that best), all clamoring to wash your boat for cheap.

Over here on the West Coast, specifically Marco Island, we started into the downward trend just about two years ago, and prices are now in many cases 50% less than they were two years ago. We are just now seeing buyers come into the marketplace again.
Naples on the other hand has only been in the downward trend for about one year, and still has a long way to go.

Kevin, believe it or not, there is such a thing... that is, if you've got the right "home".
A couple of years ago, I had a 121' converted ( ex-Canadian commercial fisheries vessel) expedition boat listed for sale. Initially docked over on the east side of Tampa Bay in a commercial yard, she had to move out and found a spot over on the west side of the bay, about a mile off a small marina, primarily due to her excessive draft.
The Coasties came out to investigate; all was legal. "Pattam's" owners would dinghy in to get groceries and an occasional prospective client of mine.

Pretty cool-- no dock fees, no utilities, no taxes.

I spent a few nights aboard and enjoyed magificent views of my surrounds.

Still have a comical video shot by local TV channel 13 sent out to investigate the 'mystery vessel'... we made the evening news.

She sold for less than $1.3M.. heckuva deal.

Kind of like Stan's Shadow vessels, only without the fancy smaller yacht.