We all know there is an insurance crisis in the South Florida Real Estate Market. The escalating insurance costs have been a major factor in the softening of the real estate market, especially for Single Family Homes. The Miami Herald reported some interesting statistics:
85% of the housing stock in Florida was built before 2001 which was the first release of a statewide building code which mandated stronger roofs. A staggering $232 million of damages in Dade and Broward since 2004 were for minor repairs to roofs on homes built before 2001.
Florida has led the USA in population growth by surging to 17.5 million residents, and this doesnt include foreign owners. They predict that we will need an additional funding source of $1 billion per year from 2013 to keep up with the demand for insurance.
The good news is that it appears Republican Governor Crist is doing something that Republicans don't usually do: want more Government Involvement in the form of subsidies, stronger auditing to prevent fraud, and get more control of the industry in general.
I always believe that the fairest way to tax is to charge a sales tax on purchases. A penny sales tax for the purpose of creating a state run insurance fund would go a long way to aiding homeowners escalating insruance rates. I think this the fairest way. Poorer people don't spend as much as richer people, and a 1% tax on purchases would hardly be felt by consumers.
This is a common way that most COUNTRIES around the world raise revenues. Actually they all charge a federal sales tax ranging anywhere from 15 to 30% on all purchases that you make.
IN the US, we do not have anything like that.
Send me your comments, possible solutions so that we can all be heard and make recommendations to the city, county and state officials, because something has to be done.
Roman Pavlik
OUR DEAL OF THE DAY: The Point Orlando Condo Hotel: www.thePointOrlando.com, tower 3 is being launched where 2/2 units are starting around $500,000. I have a few limited units in tower 2, that you can get in the mid $400,000 range. I personally purchased in the project. They come fully furnished, right near the convention center, surrounded by other projects which have 2/2 units starting in the $600,000 range