News: Current Articles
Hank Fishkind: Other economists wrong - housing on slow upswing
ORLANDO, Fla. - July 26, 2007 - Economist Hank Fishkind calls other economists' dire warnings and negative news about the housing market overblown, and says that, outside of Miami's condominium market, the state's housing markets hit bottom months ago and are now on a slow return to normalcy.
Fishkind, speaking Tuesday on his radio talk show, pointed to recent stories released by respected economists. Last Friday, for example, Bloomberg news published a story with an ominous headline - "Miami condo glut pushes Florida's economy to brink of recession." It quoted Moody's/Economy.com's Mark Zandi who predicted Miami condo price drops as much as 30 percent and a state recession perhaps by October.
"There is no doubt that the Miami condominium market is severely overbuilt, and that there will be sharp price drops and massive defaults," says Fishkind. "But, this is no surprise to anyone who has followed this market." But, he adds, "It is also important to note that Florida's housing markets, outside of Miami's condo market, have hit bottom months ago. The closing volume for new and for existing homes has stabilized."
Fishkind doesn't predict a huge upswing in closings, but "they are no longer declining. Therefore, we have already seen the worst for this cycle. There is no evidence of sharp price drops anywhere in the state, and there is no reason to expect any such drops outside of Miami condos. Population growth is holding up well as the state continues to attract large volumes of retirees and working families looking for jobs."
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July 2007 International News
First Order of Business
The Big EasyThe World Trade Centers Association 2007 General Assembly will be held October 21-24 in New Orleans. As founder and Chairman of the World Trade Center Palm Beach, I am planning to attend along with a group of local business leaders. If you are interested in joining us, please contact me.
The World Trade Center New Orleans has done an amazing job in tracking the colossal rebuilding effort. A "Rebuilding Synopsis" details current activities in NOLA, painting a vivid picture of a city re-emerging from the disaster that nearly claimed it.
Guest Writer of the Month: Richard Lehman
Richard is a WTC Palm Beach member and a prominent international tax attorney with over 35 years experience. He has crafted a brilliant narrative outlining the opportunities and pitfalls of US taxes for foreign investors. Translated into French, Spanish, German, Italian, Arabic and Chinese, Richard's US Taxation website has generated thousands of international leads from over 100 countries in the past year. Visit the website or click here to download the 35-page narrative in PDF.
Florida is Missing the Boat
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Palm Beach County Commercial properties still breaking records
Even as Palm Beach County home values slump, prices of offices, warehouses and shopping centers soar, lending credence to what analysts claim is evidence of froth in the commercial real estate market. From Publix shopping centers to industrial land, investors have been throwing cash at Palm Beach County real estate. A Publix center in Greenacres sold earlier this year for $67 million, and 537 acres at the former Palm Beach Park of Commerce changed hands last month for $162 million. From Publix shopping centers to industrial land, investors have been throwing cash at Palm Beach County real estate. A Publix center in Greenacres sold earlier this year for $67 million, and 537 acres at the former Palm Beach Park of Commerce changed hands last month for $162 million. The 423,000-square-foot complex at 777 S.
Flagler Drive last sold in late 2003 for $138 million, when The Winter Organization and Heller Properties, both of New York, bought the property.
The $470 fetched by Phillips Point topped the $462-per-square-foot deal for the Grand Bank building on PGA Boulevard. Two office buildings on Royal Palm Way in Palm Beach this year sold for $600 per square foot, but $470 is the peak for properties west of the Intracoastal. With commercial properties showing strength the housing market can't be that far behind it.
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Florida Property Tax Issue
FAR has pledged up to $1 million to support passage of an amendment to reform Save Our Homes. The amendment, which goes before voters Jan. 29, 2008, would allow property owners to continue the 3 percent tax cap they currently enjoy as a result of the 1992 Save Our Homes amendment, or to choose a new "super-homestead" exemption. This option would take up to $195,000 off their home's taxable value - providing meaningful tax relief for thousands of families.
"Passage of this amendment is critical to the future of Florida," says FAR President Nancy Riley. "It will provide first-time homebuyers a large tax exemption. It will begin to equalize property taxes among neighbors. And it will allow the people who are the foundation of our neighborhoods - teachers, nurses, police officers and emergency first responders - to afford to live in the communities they serve.
"It's time to reform Save Our Homes," Riley continues. "We invite other groups to make an investment in Florida's future by supporting this amendment."
©2007 FLORIDA ASSOCIATION OF REALTORS®
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Florida Hurricane Expos
Get ready: The Florida Department of Financial Services (FLDFS) has scheduled a number of hurricane expos around the state, and many are open to the public.
Topics vary for each meeting but focus on hurricane mitigation techniques to boost a home's defenses against a storm, including information about the state's My Safe Florida Home program and defensive moves such as storm shutters and fortified garage doors.
Currently scheduled expos and topics are listed below, but for more information or to see future events, visit the FLDFS Web site at: http://www.fldfs.com/Consumers/consumerOutReach/eventsbycategory.asp.
Multifamily housing OK'd for Okeechobee
The Okeechobee City Council Tuesday gave approval to part of the Southern Trace development.
Bill Brisson, city planner, had previously recommended denial of rezoning for the development at the Planning Board/Board of Adjustments and Appeals stage. At the July 3 meeting, the city planner recommended approval of the multifamily development submitted by Steve Dobbs, of Rudd Jones, P.E. and Associates, P.A., on behalf of the applicant InSite Development, LLC.
Mr. Brisson said the traffic issues have been resolved. While this application has been before the council several times, this part of the process called for the rezoning of 11.29 acres along the west side of Northwest Seventh Avenue and between Northwest 11th and Northwest 13th Streets from residential single family to multifamily.The applicant had previously received the future land use approval change from residential single family to multifamily for this entire development. The entire development encompasses approximately 26 acres located on three blocks from Northwest 11th Street to Northwest 14th Street within Northwest Fifth Avenue and Northwest Third Avenue and on two blocks located between Northwest 11th Street and Northwest 13th Street and Northwest Seventh Avenue and Northwest Fifth Avenue. The site will hold 230 units, as well as required open spaces such as parks and other recreational areas. The project will be developed in two phases consisting of 114 units in the first phase and 116 in the second.
Concerns over development of Briny Breezes
Opponents of plans to transform Briny Breezes in Palm Beach County into a luxury resort got a boost when the state outlined a series of concerns about affordable housing, the environment, roads and hurricane evacuation.
Residents who live near the seaside mobile home community have been
battling with Ocean Land Investments over the future of the 43-acre
slice of land along State Road A1A. Ocean Land wants to build 900
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British investors still choose Florida first
LONDON - July 3, 2007 - Although British investors in American property are exploring a broader range of locations, Florida remains the favorite, says Adrian McDermott, managing director of Escapes2, a property investment company.
McDermott says California and Las Vegas have attracted interest in the last few years, but "the vast majority of people are looking in the Orlando, Fla., area because that is where you can get rental return." Ultimately, he says, Florida is hard to beat as a vacation destination.
"I'd say 50 percent of buyers are people looking primarily for a holiday home and getting something that can contribute toward the running costs, and the other 50 percent of our buyers are investors."
Source: Overseas News (06/26/07)
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July Palm Beach County Events
6/13/2007 - 9/2/2007
Boca Raton Museum of Art
Mizner Park, 501 Plaza Real; Boca Raton, FL 33432
The Museum's All Florida exhibition annually showcases the best emerging Florida artists. As the state's oldest annual juried competition over the years it has introduced the work of thousands of emerging Florida artist. Adults $8, Seniors 65/older $6, Students $4, Groups of 10 or more $4.00, Members, children 12 and under are free. 561.392.2500
Tigers of Wrath: Watercolors by Walton Ford
6/16/2007 - 8/26/2007
Norton Museum of Art
1451 South Olive Avenue; West Palm Beach, FL 33401
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International News for June 28, 2007
E&M Visa Update for June 28th, 2007 - Volume Seven, Number Three, published by Elliot & Mayock LLP
Comprehensive Immigration Reform Dies in the Senate
On Thursday, June 28th, the Senate voted 53 / 46 against
ending debate on Comprehensive Immigration Reform [“CIR”] . Sixteen
Democrats joined 37 Republicans to kill the controversial compromise known
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Crist Signs Home Inspector Licensing Bill
Don't expect quick changes, however. The new law becomes effective July 1, 2010. The three-year gap until implementation gives the Department of Business and Professional Regulation (DBPR) time to create a program for certification, establish licensing fees and draft rules.
The newly signed law, which covers 30 pages and establishes the maximum fees DBPR may charge for applications and renewals. Home inspectors, for example, would pay a maximum of $200 for an initial license fee; and the law requires 14 hours of continuing education every two years and 120 hours of pre-license education.
In creating the bills, the Legislature said it "recognizes that there is a need to require the licensing of home inspectors and to ensure that consumers of home inspection services can rely on the competence of home inspectors, as determined by educational and experience requirements and testing." In 2006, a similar bill, also promoted by FAR, died in committee.
To read SB 2234, go to: http://www.flsenate.gov. On the left side, select 2007 session and search using the bill number.
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Tax-Savings Bill Signed
Crist started his day in Tallahassee this morning signing one bill that forces local governments to cut up to $15 billion in property taxes during the next five years and another that authorizes a special election to ask voters to reform the way primary homes, known as homesteads, are taxed.
At the Tallahassee ceremony, Crist brought along two local residents who could save about $200 this year and potentially could cut their property tax bills by 66 percent next year with the Save Our Homes reform.
In West Palm Beach, Crist's ceremony will include Michael and Jeanette Waddle, who could save $350 this year and about $2,000 with the constitutional amendment.
Crist will also appear with local families at stops in Miami and Tampa later in the day.
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Customers' Coverage Confusion
Even in the shadow of Hurricane Katrina's losses, a survey finds that one-third of today's homeowners believe that flooding is covered under their standard homeowners policy, according to the National Association of Insurance Commissioners (NAIC).
In fact, typical property and liability policies don't cover home damage from floods, earthquakes, water line breaks, termites, mold and several other perils, large and small. The survey found that 33 percent of U.S. heads of household, who own a home and have homeowners insurance, incorrectly believe flood damages would be covered by a standard homeowners or property and liability policy, despite extensive media coverage on Hurricane Katrina victims whose claims were denied because they lacked flood insurance.
"Many homeowners learned the hard way that their insurance policies did not provide flood protection," says Walter Bell, NAIC President and Alabama Insurance Commissioner. "As we enter the 2007 hurricane season, we strongly encourage consumers in flood-prone areas to check whether they are properly covered."
The NAIC survey also revealed other homeowner misunderstandings when it comes to common loss situations - none of which are covered by standard homeowners insurance policies - such as:
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West Palm Beach Marina Renovation
The project calls for expanded docks, a five- or six-story boutique hotel, restaurants and a far better financial deal for the city with the private operator, Connecticut-based Leisure Resorts. It's designed to dovetail with the city's plans to overhaul the rest of the waterfront to the south.
But some new caveats surfaced Monday, including questions about noise, traffic, security for adjacent condo residents, the extent to which boats would block water views and the look of a two-story garage in an awkward spot on Flagler Drive, which the city prizes as its most picturesque street.
Nonetheless, the plan passed, as expected, with commissioners approving three things: a site plan for the hotel, a 100-year lease extension with Leisure Resorts and a swap with the state of underwater land that's crucial to the complex deal. The lease extension needs another vote before it's final. On June 12, the state Cabinet will consider a swap of land that would give ownership of the submerged marina land to the city so the new revenues would go to the city rather than the state. If the Cabinet does not approve the swap, as anticipated, the lease extension may not gain final approval June 18. Under the new terms, that sum would rise to $180,000 or 8 percent of the marina's dock-rental revenue, which could amount to $450,000 to $600,000. Mayor Lois Frankel described it as a crowning moment after years of acrimony between the city and the marina. A development agreement approved Monday night does not require the hotel to be finished until 21/2 years after the docks are built, which could amount to a total of four years or more. The mayor would like to see a fast pace so stay tuned.
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Housing Slowdown May Be Over
The worst of the housing slowdown is over, but the nation's economy still faces challenges including rising unemployment and uncertainty over gas prices, University of Central Florida economics professor Sean Snaith
reported this week.
Snaith, director of UCF's Institute of Economic Competitiveness, said in his second quarter U.S. forecast that housing starts will decline in the third quarter and then begin a "slow upward climb through 2009."
Mortgage rates will "creep to 6.9 percent in 2009" and excess supply of homes in many markets will continue to put downward pressure on prices through 2007 and into early 2008.
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Palm Beach County June Events
West Palm Beach Antique & Collectibles Show
6/1/2007 - 6/3/2007
South Florida Expo Center
9067 Southern Boulevard (SR 80); West Palm Beach, FL
The West Palm Beach Antique & Collectibles Show is one of Florida's biggest and best antique shows. It offers hundreds of exhibitors who feature decorative accessories and collectibles. The show also offers on-site services including jewelry repair, porcelain and glass repair, doll restoration and silver and gold plating.
Friday: 12pm - 5pm; Saturday: 9am - 5pm; Sunday: 10am - 4:30pm
$11.00 Multi-day pass; $6.50 Adults; $5.50 Seniors; Children under 12 – Free
561-640-3433
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West Palm Beach Waterfront Project
West Palm Beach to consider major move on waterfront project. The city will escape a monumentally bad lease with 67 years to run if the city commission and Florida Cabinet back a $40 million marina and hotel project at the downtown Palm Harbor Marina. The plan that city commissioners will consider Monday expands the docks from 14 to 25 acres, includes a 5 or 6 story boutique hotel with a waterfront restaurant and shops. They make money. The city makes $27,000 annually leasing the docks and submerged land to the Chases' firm, Leisure Resorts.
The new deal would guarantee the city 8 percent of the project's revenue as much as $600,000 but a minimum of $180,000. The deal would mean a 100 year lease and requires a swap of submerged land with the state. On June 12, the Cabinet will consider accepting 8 submerged city acres in front of the library in exchange for state submerged land at the marina. With the land the city already has at the marina, the total would be 26 acres. The city would also agree to spend $600,000 in improvements at Grassy Waters Preserve off Northlake Boulevard.
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Citizen's Commercial Insurance
Florida's small-time commercial landlords and many of the
small-business owners who rent space from them have been hit with the
same fast-rising insurance premiums that have been shocking homeowners
since a series of hurricanes raked the state in 2004-05. Earlier this
year, lawmakers handed the problem to Citizens Property Insurance
Corp., the state-backed insurer of last resort, whose commercial
coverage until now has been limited to high-risk coastal areas. As a
result, Citizens will offer windstorm coverage to commercial-property
owners statewide starting June 1 - the official start of the 2007
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New 9-hole Ibis Course
New 9 hole Ibis course now open at Pelican Preserve at Ibis. With the exciting addition of the new nine-hole course Ibis there are not twenty-seven holes of championship golf available for play at Pelican Preserve.
Abounding water, sand and grass hollow hazards are perfectly complemented by generous landing areas and the gentle contours of the Chip-Powell designed course. You'll appreciate the challenges and rewards of all twenty-seven holes, with striking fairways that weave through the spectacular 1,100-acre community.
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Special Tax Session Called
Special session on property tax formally called on May 10, 2007
House and Senate leaders Wednesday formally called a special session on property tax relief for June 12-22 and appointed a joint committee to draft proposed legislation in the interim. Senate President Ken Pruitt, R-Port St. Lucie, and House Speaker Marco Rubio, R-West Miami, had announced plans for the special session last week after the chambers were unable to sort out their differences on the issue with only two days left in the 60-day regular 2007 session. It ended last Friday. The joint committee is scheduled to meet May 21 to review and discuss options and June 4 to present proposed legislation.
Lawmakers are trying to find a solution to soaring tax bills resulting mainly from rising property values. They also are looking at inequities in the system that have resulted in some taxpayers getting bills many times higher than neighbors with similar properties. Pruitt and Rubio called the special session to deal exclusively with property taxes, and they have been adamant that lawmakers should focus only on that issue.
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