Homestead Exemption

Home inspections in the Keys

nspections-what to expect

• Siding: Look for dents or buckling
• Foundations: Look for cracks or water seepage
• Exterior Brick: Look for cracked bricks or mortar pulling away from bricks
• Insulation: Look for condition, adequate rating for climate (the higher the R value, the more effective the insulation is)
• Doors and Windows: Look for loose or tight fits, condition of locks, condition of weatherstripping
• Roof: Look for age, conditions of flashing, pooling water, buckled shingles, or loose gutters and downspouts
• Ceilings, walls, and moldings. Look for loose pieces, dry wall that is pulling away.
• Porch/Deck: Loose railings or step, rot
• Electrical: Look for condition of fuse box/circuit breakers, number of outlets in each room.
• Plumbing: Look for poor water pressure, banging pipes, rust spots or corrosion that indicate leaks, sufficient insulation
• Water Heater: Look for age, size adequate for house, speed of recovery, energy rating.
• Furnace/Air Conditioning: Look for age, energy rating. Furnaces are rated by annual fuel utilization efficiency; the higher the rating, the lower your fuel costs. However, other factors such as payback period and other operating costs, such as electricity to operate motors.
• Garage: Look for exterior in good repair; condition of floor—cracks, stains, etc.; condition of door mechanism.
• Basement: Look for water leakage, musty smell.
• Attic: Look for adequate ventilation, water leaks from roof.
• Septic Tanks (if applicable): Adequate absorption field capacity for the percolation rate in your area and the size of your family.
• Driveways/Sidewalks: Look for cracks, heaving pavement, crumbling near edges, stains.

www.REALTOR.org/realtormag Reprinted from REALTOR® Magazine Online by permission of the NATIONAL ASSOCIATION OF REALTORS® . Copyright 2003. All rights reserved

 

Building a home in the Keys

Buying a lot and building your dream home may be the way to go. The cost of building will vary widely from $150.00 per square to $450.00 and up.
Basically lots in Florida as far as price goes will run as follows.
Most expensive
• Open-water—Atlantic or Gulf
• Open-water Inter-Coastal  or other Rivers-Lakes
• Canal Homes with Open water views (Bay or Atlantic-Gulf)
• Canal homes-Boatable and quick access to open-water
• Dry Lots—price varies widely, based on the community and area.

*As to canal lots and how boat ability affects prices.
If the depth of the canal and the width allows for a 50ft boat or sailboat-it will be more expensive than a lot on a canal that is shallow and usually not as wide. The bigger the boat, the more room needed to turn around.

*Access to open water is another factor that influences prices.

If you’re only minutes (half hour) to good fishing-diving, expect to pay more.
Also homes on shorter canals will generally have better water quality. In the Keys we call these swimming canals. The tides flush them out easier and the water is clear.

For prices on the individual keys please contact me. The prices will vary depending on depth of boating etc—see information below.

Permit prices and restrictions will vary in each community. Generally the more environmentally sensitive the area is, the more restrictions there are in getting a permit. (Since the water is one of the main reason people want to be here, the state and the communities want to keep it that way.

Important:

Regarding pricing. The closer to the water and the deeper the boating,(boat draft-a 50 foot requires deeper water and wider canals than a flats boat) the higher the prices.

Another thing to do is find out what flood zone the property is in per FEMA maps and then talk to a local insurer on how that will affect your rates. Do this ahead of time.

#In all cases if you find a lot that you like, my suggestion is that you ask for a letter of build ability from the local zoning commission as a clause in your sales contract. Always-always, talk with the county yourself to get the update on the laws.

So, yes, you can build here and it’s done all the time, but make sure you ask all the necessary questions and if you can, get it in writing.

See the Biz directory for builders if that’s the way you want to go. If you want a new home contact a residential agent.

REGARDING BUILDING

Ask the REALTOR that you pick to help find you a good builder that will respond quickly. Another consideration is to buy a lot and build later (be careful here as building codes and laws can change due to density controls) I would first see how long it takes to get a building permit and then if you get one how long you can wait. In the Keys when you get a permit there is a limit of a couple years during which time you have to at least start the process (bring electric to the site-do a septic check etc)

Since all this varies widely make sure you get all the answers, Probably best to go the the permit department yourself and have a discussion

Monroe County permits

You will probably need a building permit if you are:
• Building a new building or Adding to an existing building
• Renovating an existing building
• Demolishing an existing building
• Constructing a prefabricated structure
• Moving or installing a mobile home
• Installing/Modifying other miscelaneous structures
• including fences, pools, decks, fireplaces, etc.

You probably also need a permit if you are working on your structure's:
• Electrical System
• Plumbing System
•  Heating or Air Conditioning
•  Ventilation Systems

State and or Municipal Licenses required
• Plumbing
• Electrical
• Asbestos Abatement
• Roofing

Building Departments
• MIDDLE KEYS OFFICE
• 2798 Overseas Highway
• Suite 300
• Marathon, FL 33050
• 305289-2501
• fax: 305 289-2515
•  
• UPPER KEYS OFFICE:
• 88800 Overseas Highway
• Tavernier, FL 33070
• 305852-7100
• fax: 305 852-7103
•  
• LOWER KEYS OFFICE:
• Juvenile Justice Building
• Room 2030
• 5503 College Rd.
• Key West, FL 33040
• 305295-3990
• fax305 295-3994
http://www.co.monroe.fl.us/pages/gmd/bld.htmhttp://www.monroecounty-fl.gov/Pages/MonroeCoFL_Growth/MonroeCoFL_BuildingDept/index

Florida Building Codes
• http://www2.iccsafe.org/florida_building_code/

The purpose of the Building Code is to protect the safety, health, and general welfare of the citizens through structural strength, stability, sanitation, adequate light and ventilation, and safety to life from hazards attributed to the built environment. This is accomplished through the implementation of building, plumbing, mechanical and electrical codes along with various state and local codes and standards

Information on Complaints Against Contractors:
Don't get nailed! Many citizens in Florida have fallen victim to dishonest, unlicensed or improperly licensed contractors. Florida Statute 489 requires all construction contractors to hold a valid contractor's license prior to engaging in contracting. Always require that a contractor show you a valid contracting license before you sign a contract. Some indications that a contractor may be unlicensed are: the contractor requests a large deposit or all of the money up front before any work has commenced, the contractor asks you to pull a "homeowner permit", the contractor pressures you to sign a contract "today or I can't give you this special price." To verify licensure of a contractor, you may call the State of Florida Dep't of Professional Regulation at 941 338-2373 or search their contractor licensing database. The City requires proof of licensure from contractors who pull permits for properties located in the City, so be sure to require that the contractor pull the permit in his name, not your name

So always play it safe and do it right. This will certainly help you in the Insurance area also---The extra structural costs for doing it better really pay off if a Storm hits and or you decide to sell

#The information above is based on my experience in the Florida keys, which is highly regulated due to environmental concerns. With regard to making any decisions, be sure to check with local and state permit and zoning authorities and/or a Real Estate attorney

A home as an investment

Housing is a key driver of the economy and continues to be a solid investment for the majority of American households. Housing provides steady returns largely unaffected by volatile movements in the stock market, and will be driven by a strong fundamental demand into the future.

Housing wealth has a more immediate impact on consumer spending than stock wealth and has sustained the U.S. economy since the beginning of this decade.

Homeownership is the traditional starting point for American families to accumulate wealth, according studies by the National Association of Realtors®, America’s leading advocate for homeownership.

NAR reports that the national median existing-home price increased 12.7 percent in 2005 and is projected to rise at a more normal rate of 5.0 percent this year. Since record keeping began in 1968, the national median home price has risen every year, even during recessions and periods of sales decline. Typically, in a balanced market, home values rise at the general rate of inflation plus 1.5 percentage points.

Buying a home should be approached as a long-term investment, providing both equity accumulation and tax benefits over time. Despite some high profile media reports, it’s important to note that most of the country has never experienced even a temporary downturn in home prices since modern recordkeeping began.

Low mortgage interest rates, a growing number of households, strong demographic factors, economic growth, and an improved labor market have been driving Americans in record numbers to purchase a home. In addition, over the last few years, Americans have shown a readiness to pull their money out of stocks and put it into real estate, often as a second home – a wise and practical move that provides safer returns in a tangible asset. In fact, one out of three of homes purchased are a second home – about a third of those are vacation homes and the rest are for investment purposes, generally to provide rental income.

Demographic demand also favors housing over the long term. The children of the baby boom generation, often called echo boomers, are the second largest generation in U.S. history. They total about 75 million people born from 1982 to 1995, and are just entering the years in which people typically buy a first home. In addition, the boomers themselves remain in peak earnings years, there is a strong immigration impact, and minority homeownership rates have been trending up.

The sharp changes in the financial markets over the last few years underscore the stability of residential real estate as a safe choice for consumers. Although it’s possible for local housing markets to experience temporary price corrections, most of the peaks and valleys in home prices that deviate from a normal, gradual increase tend to smooth themselves out during the typical period of homeownership.

Dollar for dollar, the rate of return on an individual’s cash downpayment on a house is substantial. Homebuyers typically use their own money to cover only a small portion of the purchase price, yet the home appreciation they realize is based on the total value of the property.

First-time home buyers make a median downpayment of 2 percent, while repeat buyers put 21 percent down – thanks to the equity they’ve build in their previous home.

According to Harvard University’s Joint Center for Housing Studies, there is a dramatic increase in the rate of return on housing the longer it is held. For instance, the typical homeowner who experiences an annual home appreciation rate of 5 percent and who made a cash downpayment of 10 percent will generally receive a 94 percent return on that cash after owning the home only three years. After owning for five years, a homeowner can expect a rate of return on the downpayment to increase to 225 percent; after 10 years, the rate of return jumps to 623 percent.

The stock market has experienced wide swings in value over the past 20 years. During that time, overall home values have continued to rise steadily and contribute significantly to household wealth and spending patterns.

Housing is not a quick-in, quick-out investment. When purchased for the long term, housing is one of the safest investments a consumer can make. In addition to the savings accumulated through a buildup of equity and tax advantages, a home provides shelter. No paper investment provides this benefit.

Homeowners accumulate significantly more wealth than renters. According to the Federal Reserve Survey of Consumer Finances, the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700. Clearly, owning a home is the best way for most families to build a nest egg.

Homeowners use their home equity to get cash for emergencies as well as for the purchase of big-ticket items, and have more confidence in housing wealth gains than stock gains that could prove to be unsustainable. In addition, the capital gain people realize from the sale of their home is a significant source of downpayment funds for most repeat buyers; those funds are also used for other purposes that stimulate the economy through consumer spending.

The above information and statistics are from the N.A.R. National Association of REALTORS