Real Estate in Northeast Florida and Around the World

There's been a lot of discussion lately about Chinese drywall, and the problems surfacing as a result of its use in homes.  What exactly is "Chinese Drywall"?

Drywall is a composite "board" typically made of gypsum, which is a natural mineral.  Synthetic materials are also used from various products, including residue from coal-powered electricity plants.  Chinese drywall refers to drywall which was manufactured in China, which may or may not contain gypsum or these residues.  The investigation is still at hand as to the source of the drywall and specific materials used.

The "Chinese" drywall investigation began after homeowners began complaining of air conditioning units failing, electronic equipment (TV's, sound systems, etc) failing - as a result of erosion to the wiring.  Additionally, there was common complaints of a smell of "rotten" eggs in certain areas of the home.  The common denominator was the use of drywall manufactured in China.  While early testing indicates that there are no known health factors involved, there have also been cases of sneezing, respiratory issues, and other airborne related concerns.  The timeframe of installation to date appears to have begun during 2004.

How do you know if you have "Chinese" drywall?  Really, the only way to know for sure is to have a professional inspect your home.  Before calling someone to do this inspection, make sure they have received training and education on this.  The last thing you want is someone who claims to be an expert come in and rip out sections of your wall - this does not need to be done.  A qualified inspector will be at a minimum, certified by ASHI - American Society of Home Inspectors, hold a builder's or contractor's license, and be able to discuss with you the type of training received that qualifies them to do this inspection. And just because you installed drywall prior to 2004 doesn't automatically get you off the hook.  If you are experiencing electronic failures before their time, or respiratory issues, you should have a professional inspector do an thorough inspection of your home.

Whether you are buying or selling a home, you should have an inspection done.  If you are selling and a thorough home inspection is done, you can produce this report and provide "one more thing" that makes your house more attractive in this market of high inventories.  If you are a buyer - you want to make sure that you "know your house" before you buy it.

If you would like more information or home inspections, or Chinese Drywall concerns, just send me an e-mail and I'll get information over to you.

See you around the neighborhood!

There is an effort underway sponsored by the National Association of Realtors, to create a new Visa class - nicknamed the "Silver Visa".  This Visa would allow retired immigrants from other nations, to purchase a retirement home and live in the United States on a permanent basis - much like the Permanent Resident Alien status now in existence.  What is the difference?

Well, to obtain a Silver Visa, the immigrant would first have to purchase a residence in which they would live - not rent - they must own.  In addition, they would have to demonstrate that they have an income sufficient to live in the United States, would not be allowed to work in the U. S., and would be required to have health insurance sufficient to take care of their retirement health care needs.  In other words - they will take nothing from U. S. taxpayers, but will contribute greatly to the U. S. economy - buy purchasing real estate, paying property taxes, buying goods and services in the U. S., etc.  Thorough background checks would be done to ensure those coming into the country are well-intentioned - as most are. 

Every 15 seconds a "baby boomer" retires around the world - not just in the U. S.   And these "boomers" are well-heeled and well-funded, and are just looking for a comfortable, safe place, with a moderate climate to spend their last few years and oh yes, their money.  Why not here in the United States, where it is the safest place to invest in the world?

If you agree with this concept, please write or call your state and federal representation in the Legislative agencies, and ask them to support this effort.

See ya around the neighborhood!

I heard this recently when the home loan interest rates popped up from their 4.875%.  I had to chuckle to myself and then remind the person that it was time to put everything into perspective.

6% is still very, very low.  We are talking historical low.  Maybe not the lowest in history, but if you look at home mortgage rates say over the last 30 years, it is a rare occasion that you see it dipping in the 6% range, much less sitting at 6%.  I just returned from a trip that included a stop in St. Petersburg, Russia that allowed you to borrow money for a home at the rate of 24%.

So, America, let's put this into perspective.  Paying 6% to finance a roof over your head, make a long term investment into your financial wealth bucket, and have your own little corner of the world to call your own - that is pretty darn cheap in my book.  I remember rates at 19% (oops, I'm dating myself), and guess what - people were buying homes. And oh, but the way - The United States of America is still the safest country in the world to put your money - and owning a chunk of that ground is about the safest bet in town.

So - we should be considering ourselves fortunate to have access to money - that is when we demonstrate the ability to repay that money - at a very reasonable rate. 

See ya around the neighborhood!

I just returned from exploring several Baltic Sea nations, visiting several remarkable cities.  The weather ranged from sunshine and the upper 70's on the day of our arrival into Northern Europe, to the upper 40's and sideways blowing rain.....the cold, wind and rain was our traveling companion on most of our journey, topped by near hurricane force winds on our last night at sea.  Talk about memorable journeys, this one ranks near the top!

I learned several things while I was on this journey about how people in northern Europe live.  First - cold, wind and rain do not stop them from living their lives.  They walk, bike and go about their lives regardless of the weather.  Secondly, they live in about half the space that most of us enjoy, with so much less than what we require on a daily basis.  And thirdly, they pay so much for the things that we pay much less for.

Housing - a basic need for all of us - seems to go on endlessly in these cities, but in a much different format that what we are used to here in the States.  Densly populated apartment "flats", go on forever.  Whether the building was 500 years old, or a recently converted "communist era" building, the density of housing in a square kilometer astounded me.  And for the price - in St. Petersburg, Russia, you too can have a 700 square foot apartment with lower range finishes, starting at about $100,000 - and at 24% financing, who wouldn't jump on that?  And in Germany, the same $100,000 will buy you a little bigger place (maybe 800 square feet) with more modern conveniences and better rates, but you will need at least 50% down - and that is if you are native to Germany.  And in Finland and Sweden, have your own little sauna where you can enjoy sweating out all the impurities, then jumping in almost freezing water to close the pores......several times a week.  Brrr!!!!

In speaking with real estate professionals in these cities, I heard repeatedly - from Denmark, to Estonia, to Germany and Switzerland - they all want to know what is really happening with the market in the United States, because they know, when we begin to see improvement, their markets will improve as well.  The old saying "When America sneezes, the rest of the world catches the flu" is so true.  My response to them - America still has a bit of the sniffles, but we are up and at it again, moving slowly but getting back to what we do - work, make money and enjoy our lives!  I shared with them that our local Northeast Florida market is seeing signs of life.  It was wonderful to have the exchange of information on global markets from professionals in the field in Europe. 

The opportunity to expand my global real estate network not only helps my international customer base, but my domestic base as well, by developing a deeper understanding that each market while different from each other, are related in many ways.  But, I also know that I cannot predict what another market may do, so to have direct contacts in other areas of our nation and the world make it so important when I am providing my customers with real estate investment information.

So, what I learn everytime I venture out of my "backyard", is that there are wonderful, historic places that our ancestors came from, that help me figure out this patchwork quilt we call "America", but at the end of my journey, I continue to tell myself "There's No Place Like Home, There's No Place Like Home".......

See ya around the neighborhood!