It’s been an oddly quiet day, even the fireworks seem to be reflecting the economic situation. Guess there isn’t much for people to celebrate. There are no jobs left in Florida that aren’t taken by under-the-table workers. And the do-gooders who let them get away with it are so over-documented they can’t do the same now that they find they may have to. Wouldn’t that be ironic if, in the end, the people who spent a lifetime pretending to be “unprejudiced” wound up paying taxes working a scummy job after retirement to support those who’ve been playing the system since day one? Did I say pretending? Oh yes, I know well to what extremes white people will go to appear tolerant in public, then privately cursing it all. But that is also called not standing up for your rights, and now they don’t have any.
So I grabbed a newspaper and reviewed the rental situation. There will always be higher-priced places on the waterfront aimed at the tourists, so let’s take it a mile inland where real people live. Medium range apartments are easily available for $600 and smaller houses rent for $650. That means a mobile home is still a bargain, and more so considering entire occupancy costs. (I found the most economical property in the state, but what I can’t find are other people who appreciate it, shut up, and quietly enjoy the benefits of all my hard work.)
The housing market is still geared toward people who spend all their available cash on living expenses. It’s a holdover from the propaganda that the American dream was home ownership. Statistically, the renter has 66% more disposable income than the owner. It’s a pity so few of them have experience investing it. A house is a false sense of security because the money isn’t really there. Somebody recently said correctly if you need instant cash, you can’t exactly sell a bedroom or two.
Most homes are about to become the biggest liabilities in people’s lives. Property taxes are now based on appraised values which are in turn based on the highest most recent selling price. That price is twice what it could be sold for. The papers are full of houses that aren’t moving because the taxes are too high. (The most taxes people will pay on a home appears to be around $6,500 per year beyond which they won’t buy.)
Condos are in similar straits. That is coupled with such huge monthly maintenance fees that the real estate ads no longer mention them. JP reports his fees have gone from $70 to $380 per month with no increase in services or property value in the past ten years. That means in the next ten years, he has to come up with $50,000 in fees just to stay on an even keel. Try that when you are retired. Thus, non-luxury 1 bedrooms are sitting unsold at prices of as little as $85,000. People in the Keys are crying because no property is being moved. They blame it on the oil spill, but I think not.
Rental rooms are another category. The going rate in a detached house seems to be $400 per month. That is hard to apply to a mobile home, since the perceived value is always less. You can easily get a “trailer” room for $300 per month around here. Mobile home prices are also falling but I attribute that to the aging population of the owners. It is mostly old-timers who bought the trailers as winter homes many decades ago.
So the question comes up, what is there to invest in anymore? I don’t know. There is very little you can invest in anonymously any more, which was the way the system is supposed to work. I think gold is good, but many now spurn it because it isn’t used by industry as is silver. I’d still keep 20% of a good portfolio in precious metals. That’s the metal bars, not the certificates. A lot of people who bought certificates don’t seem aware the metal has not yet been taken out of the ground. Note that it is unwise to keep metals in a safety deposit box (the weight is a giveaway).
Other than gold, I have no ideas. I’d be glad to find something that will somehow not lose in value as the leading edge of the boomers soon begins to tilt the economy inwards. That means steer far away from the vastly over-priced and pre-cooked stock market. I suppose one could find land with low taxes out west but that is hardly retirement. If you want to make $50 per month for each $1,000 you invest while enjoying yourself, start taking music lessons 45 years ago. If that doesn’t make sense to you, just do nothing for a little while longer. Ha!
Later, I’ve just been informed that Florida damage inspectors do not take bribes. That would be illegal, so what they do has been made legal. Ergo, no bribe. It is referred to as a “re-inspection fee” and is collected by the inspector’s boss man or his “department”. My apology for any misunderstandings.
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