The title, "Bubble trouble? Unlikely," hides what I think is the true

[rzemanfl]

point. *'s tax policies, instead of encouraging business investment have instead encouraged real estate speculation that is making housing unaffordable for the middle class. Read the article, especially the part about taxes, at:

http://www.sptimes.com/2005/07/10/Perspective/Bubble_trouble_Unlike.shtml

[acmejack]

1. I will continue to subscribe to the bubble theory, Thank you.

I suppose time will tell who is correct. For our sakes, I certain hope the good professor is on target. I simply can't believe this is what should be taking place in the real estate market.

[rzemanfl]

2. Me too, but it appears the bubble is not being driven just by

interest rates, but by tax policies too, which I had not really thought about before. The article itself is a puff piece to make us folks in Florida feel wealthy and smart.

By the way, never get on New College's e-mail list, they are like telemarketers once they have your addy. I made the mistake of going to their website to look something up for work, was fortunate to get a different job after that.

[teryang]

3. For those who think Florida is so great

I can't wait to leave.

The out of state population buying up property is not improving the conditions for average workers who are priced out of market. The problems with the homeless, the mentality ill, dependent children (wards of the state), and crime are out of control.

In my area, as many homes are transferred by will or gift as by sale. The reason? Buyers are not as common at these levels as this article suggests.

For millionaires living in condos on the beach and tourists, it may seem great. The economy here, which is anti-labor, otherwise sucks. Watch out for the criminals and mentally ill, you may get hurt while you are here.

[rzemanfl]

4. Here everything in sight is being turned into condos that seem to

sit vacant. This may help the tax base (lots of taxes, little demand for services) but I can't see how it helps the local economy to replace occupied motel and hotel rooms with empty condos.

You are absolutely correct that the state is anti-labor, etc.

[teryang]

5. You're right most of the condos are empty

...most of the time. It reminds me of the real estate construction boom in Texas before the Savings & Loan collapse.

The motel owners can't keep up with the taxes and insurance increases and are forced to sell out. The hurricanes are the last straw pushing the independent operators out of business.

The financial implications of the condos are perplexing. I guess one can assume that the super rich class of people, the top one tenth or one third of one percent could be buying all these units and afford to hold onto them. The investments are maintained by debt and then greater debt to furnish buyers for the investors. How many Doctors are there in Florida?

Contrast this to the small businesses across the street from the vacant condos and the transient labor employed by construction companies when they are under contruction. These people are just getting by. Without the influx of motel guests, the business activity at the beaches actually falls after the construction is completed. The tourists, college week and bike week visitors don't say, "hey let's go look at the condos blocking the beach view."

[HysteryDiagnosis]

6. Where I used to live near Loxahatchee..... lots went for oh maybe 5,000 15

to 20 years ago. The lots run an acre or so in this area. A friend who still lives there told me yesterday.. that a lot next door to a relative of his... is going to list for 200,000. Oh bother.

Where I am now... I pay virtually NO PROPERTY TAX. I was paying almost 2,000/yr in Fl. I don't miss it, and I cannot imagine what people are paying in property taxes over there now... I don't see how they can do it.

[teryang]

7. The value of my lot increased over 200 %

Meaning times three in less than three years if I'm using the numbers right. 12K to 39K. It is small and floods.

[HysteryDiagnosis]

8. Outrageous.... therefore your property taxes have risen accordingly

[Syncronaut Seven]

10. Annual rate of 80%

(12K * 1.8) first year (21.6K * 1.8) second year = 38.88K

[shrike]

9. I met a gentleman from Sarasota

Born and raised there. When he was a kid, it was a great place to live. Now the place is booming and he's miserable.

He's a tradesman and does a lot of work out at Long Boat Key. The residents treat him like crap but they pay him top dollar because a lot of tradesmen simply refuse to put up with them. So he grits his teeth, takes the money and runs.

He says that whenever a hurricane is on its way, the locals root for it to hit Long Boat Key.