Showing posts with label Florida Real Estate. Show all posts
Showing posts with label Florida Real Estate. Show all posts

Wednesday, September 30, 2015

Killing Citizens



Trying to kill the beast is proving harder than expected.


Or is it an intentional suicide ?

The strange (but perhaps normal as Florida is governed)  purpose of eliminating a perfectly functioning publicly sponsored Insurance Company  is proving harder than expected.

All the tricky ways to induce or to plainly force home owners into unknown private insurance companies is meeting a mass resistance from many property owners.

I never understood why Citizens (which re-insures a good part of its policies) is supposedly incapable of doing a good job at insuring homes if we get hit by a major hurricane, while other smaller companies could do it safely and pay their claims with no risks to the insured. 

About 20 years ago I was in the business of importing merchandise and I suffered a 100% loss of a whole cargo that arrived at Miami Airport.  The goods had been insured by the sellers in a California insurance company.
Guess what!  
When I made my claim this insurance company was in bankruptcy. I didn’t get a penny.  Just to inform you that Insurance companies can also take you for a ride. 

Safer than Citizens?  No way I can believe that.  

Citizens proved in previous hurricanes that it can do a perfect job; it paid its claims; it didn’t raise sensibly its premiums.  

And how do we know that in a future, confronted with heavy losses when hit by a sizable windstorm, these new companies will not just abandon and walk out of Florida?  The largest insurance companies have done it in the past, everybody knows that.

But it is too late now to save the victim.  

Just read the article I found on FloridaRealtors.org on Sept. 30, 2015

Fewer owners ditching Citizens for private insurance


Customers in Florida's state-run and largest insurer are getting choosier.


Fewer than half are accepting offers to switch to private insurers this year, down from 70 percent a year ago at Citizens Property Insurance Corp., records disclosed at a meeting Tuesday show.
Though 1.2 million transfer offers have been approved by regulators this year, just 141,680 customers have actually switched, records show. That's a significant slowing from record departures in recent years that have seen the company downsize from 1.5 million customers to 585,000, including about 60,000 in Palm Beach County.

The changes come as the company phases out, for example, warnings in letters to customers about 45 percent storm taxes if they stick with Citizens. The Palm Beach Post probed how unlikely such assessments have become after a storm, and noted the letters fail to mention customers could be charged another kind of storm tax if they switch to private carriers who fail.

Private insurers have continued to use the bold-faced warning nearly half a year after Citizens said it would cease, although officials said it is on the way out for upcoming offers.

To be clear, private insurers have not been making all the offers allowed by regulators, sometimes because they covet the same customers or simply choose not to act. In June, for example, private insurers did not make any of their 45,500 approved offers.

Still, out of the about 300,000 offers companies made in 2015, 47 percent have been accepted, records show. The outcome from about 46,000 offers in September is not yet known.
The acceptance rate declined from 69 percent in January to as low as 35 percent in March. It averaged 70 percent in 2014.

Why? Some of it has to do with a shift in the mix of customers remaining in Citizens that has created "uncertainty" in the acceptance rate, said Barry Gilway, Citizens' chief executive.

"It's very hard to nail down what that the ultimate takeout rate is going to be," Gilway told the company's depopulation committee Tuesday, a day ahead of a meeting of the company's full board.

Many customers with standard home policies, often priced close to what private insurers want, have already left. That leaves a higher proportion of others like coastal, wind-only and mobile home residents who may find fewer offers close to Citizens prices.

State-approved transfer offers differ from ordinary marketing pitches because consumers are automatically switched if they do nothing.

Gov. Rick Scott vetoed a bill passed unanimously this spring that would have beefed up consumer protections on Citizens offers. 

That has not slowed calls for consumers to get clearer information about what private insurers intend to charge.  Citizens officials noted Tuesday they are working to see that an estimated premium appears in certain October letters related to the offers.

Monday, March 24, 2014

Real Estate is coming back, doing great ! Are you sure about that ?



Prices gains in all markets.

Foreclosure numbers declining steadily.

These are surely signs of a great comeback of real estate.

Or are they?


In the last five or six years I have hardly sold any property to a Florida individual resident. Not exactly. About three years ago I sold a small distressed condo to a local investor at a giveaway price. 

The rest has all been out-of-town buyers, foreign buyers, vacation homes, bottom-feeding out-of-town investors.

I have been thinking a lot about it lately. 

What has happened to what we used to call "normal people" ? Those young couples in search of a first home, the "empty-nesters" selling their larger houses to get into smaller apartments ?
I am not talking about the wealthy South American seeking a home in his new country of adoption. 
I am referring to plain American buyers, my friends, the friends of my kids, those who, in a not so distant past, would have been calling me to ask for my expertise. 

They are all but gone. 

Perhaps I am getting old and my kind of clientele is naturally changing. I might be getting referrals from other strata of society. I am getting wealthier and world-wide-known. Could that be ?

Or could it be that perhaps the country has changed, or Florida has changed?

Florida is a place of retirement, a place of vacations. That explains why many of my prospects call me from France, or Argentina, Canada, or New Jersey, or Chicago. 

But does it explain that these have become ALL my clients ?

I am suspecting that real estate problems have not quite ended and might even be worsening.

Affordability of homes is the keyword. Of real homes, not multimillion-dollar condos on the beach, or luxury private guarded neighborhood homes.

Can an average thirty or thirty-five year-old person dream of owning his own home at this time?
Yes he can,  if he can solve all of the following questions:

  • Pay with a normal income a home mortgage, the homeowner and hurricane insurance, the property taxes, the maintenance expenses; and at the same time manage to keep the total of these payments below a 30% of his monthly pay-stubs ?

  • Put together an amount sizable enough for a down payment, and all expenses associated with a home purchase?

  • Manage to arrive to this stage with an almost immaculate credit report ? 

  • Be confident about his present job security and the stability of his income (or the combined income of his couple) ?


If he has managed to solve all these points,  he can get to the next step.

Which is:

  • Find a suitable property whose seller is willing to accept an offer that is not a "cash with no financing ontingency" deal.

  • Find a seller that is ready to be very, very patient, because now starts the following point which is:

  • Get the mortgage loan. As you might suspect, those same banks who were so generous in generating and granting these incredibly easy -and trashy-  loans (that they would later resell to unsuspecting investors) are now the most strict, severe, inflexible lenders in the history of the world. 


I have assisted to a couple of these loans and if it hadn't been awful and almost tragic, I would have called it hilarious. I swear that these guys wouldn't make a loan to their own bank!  Endless requirements. Exaggerated insurance obligations, paper,  documents, statements, constraints, more papers. Where did your money come from? We need proof that it's all yours, not your dad's, and so forth. 


But wait!  If it was an apartment in a condominium building, here comes the best. Is your building approved by Fannie Mae?  Does your building have too many tenants?  Does your building maintain reserves? Does your building have more than a certain percentage of investor owners? 
Not in compliance of all this and some more? You're out of luck, my friend. And guess what? Most buildings won't pass the test.



What's funny is that most of these Fannie Mae requirements are addressing problems long gone now,  which were precisely originated by the complete lack of ethics and rules in the famous "real estate balloon" years and which do not present a real problem nowadays. The scope of this blog does not allow me to explain why, but it is evident. 

Of course, all this can be avoided  or eased if you can remedy the problem with a 40 or 50% down payment, or even better: just buy it all cash.  Which bring us back to my dear foreign buyers and investors. 

Do I have the solution?

In a certain way, if we correct all the above, we'll get it right.

Which means:


  • Get normal people back to making a decent income. The ratios that mortgage lenders traditionally established are reasonable as long as they are adapted to reality.    Perhaps we should build smaller homes, but it is evident that the national average income in real dollars has gone sharply down in the last thirty years or so.

  • Get them steady jobs. Bring back the good jobs to America.  Good jobs will allow all of us to maintain better credit reports, and by the way send our kids to colleges, feed them better, keep them in better health, educate them better, and make this country's economy roll again.  

  • Keep decency and ethics in the mortgage business, but letting those who got us in the big mess dictate the new rules can be a matter of discussion.



Ranting again!   And just because I read the following article today:


Report from RealtyTrac

Most Housing Markets Still Worse off Than in ‘06:


Most housing markets are faring better than they did in the depths of the recession, but the recovery still has a long way to go.

Just 8% of housing markets in 410 U.S. counties are better off than they were in 2006—a year that predates the crisis, according to a new report from RealtyTrac. The report analyzes housing market health in 410 U.S. counties over the past eight years in two-year intervals. Market health is measured according to four metrics: home price appreciation, affordability, percentage of bank-owned real estate sales and unemployment rates.

Still, while a majority of housing markets have yet to return to their pre-crisis standards, the report shows that the worst effects of the crisis have largely passed. A full 96% of housing markets are better off than they were in 2010. Eighty percent of housing markets are also in a better state than they were in 2012, suggesting continuing improvement.

“The housing recovery has taken root in hundreds of counties across the country,  and almost all local housing markets are better off than they were four years ago when foreclosure activity peaked,” RealtyTrac vice president Daren Blomquist said in a press release Friday.

Roughly 1 million homes went into foreclosure that year and “we saw less than half that number of bank repossessions nationwide in 2013,” Blomquist said.
"Even in hard-hit markets like Stockton, [Calif.], Las Vegas and Lansing, Mich., where real estate owned sales represented more than half of all sales in 2010, the percentage of [real estate owned] sales has been cut at least in half," Blomquist said.

Home prices in three-fourths of the counties included in the report continue to hover below their 2006 levels. But low inventory in cities like Seattle, San Francisco, Denver and Oklahoma City has led to rapidly appreciating home prices in those areas, according to the report.

"Those rapid home price gains are causing a concerning drop in affordability rates in some cities, but homebuilders and homeowners with regained equity should help provide more supply to balance out many of those markets in 2014," Blomquist said.

 Read in the National Mortgage News – March 23, 2014


Henry B. Nathan

is a Real Estate Agent at

United Realty Group Inc.

Please call me for your real estate assistance at:

 (800) 416-2747   (954) 296-6741

Email me: hbnathan@gmail.com


Visit my website: www.condo-southflorida.com

Tuesday, December 07, 2010

How State Farm won and how they got away with it.

It does not happen too often nowadays.
Good journalism is the essence of our democratic values.

I real the following in the Sarasota Herald Tribune.

It is so revealing that I have no choice but to post it on my blog.

The article is not so much about the ruthless conduct of big insurance companies, but especially revealing on how our legislators can allow them to carry out these preposterous and immoral ripoffs.

Did you ask yourself why the cost of owning a home has gone up so much during the last few years?

We all know that INSURANCE.is one important element.

You think you know what's going on?  Think again.

An intricate web of offshore companies set up with the only purpose of escaping regulations and skimming the consumer is the essence of the whole scheme.

You think you have escaped their grip?  Not so easy!

Shameful?

What is being perpetrated against our middle class is across the board and unbelievable.

Banks, Insurance companies, are only the tip of the iceberg.

But, as a realtor, looking as the worse real estate crisis in history, I can't but write my indignation.





HERALD-TRIBUNE INVESTIGATION

How State Farm cashed in on a crisis

A Sarasota Herald-Tribune investigation

When State Farm stepped up its march out of Florida, it loudly and publicly claimed hurricanes were pushing it toward financial disaster. The company argued it had to leave the Florida coast -- and drop nearly half a million customers -- because it could not profit in a state wracked by so many storms.

But State Farm never really left Florida.

A Herald-Tribune investigation finds Florida's largest insurer has instead found an easier way to profit from homeowners desperate for coverage. And the desperation State Farm helped create allows it to command some of the highest rates in the world.

The conduit for this back-door insurance is DaVinci Reinsurance Ltd., an offshore company with no physical office or employees of its own that sells policies to insurers to cover their storm losses.
The virtual corporation was launched in 2001 by State Farm and a Bermuda reinsurer with which it has close ties.

State Farm provided $200 million in seed capital. Its partner, RenaissanceRe Holdings Ltd., took on management and the recruitment of other investors.
While it has little physical presence, DaVinci is now one of the state's most important hurricane reinsurers. Contracts show DaVinci provided coverage last year to more than 50 Florida insurance carriers representing the owners of 3.7 million homes.
Through DaVinci, State Farm quietly continues to collect money from thousands of former customers who were told their homes were too risky to insure.


Collectively, these customers have paid hundreds of millions of dollars to State Farm's offshore reinsurance venture. Without a hurricane, the $300 million in Florida premium paid to DaVinci from 2006 through 2009 has been largely profit. Florida's payments for 2010 are not yet available.

The advantages to State Farm are clear.

In Florida, the insurance rates State Farm can charge are regulated by the government. Profits are controlled and taxed. The potential loss from a major hurricane is measured in billions of dollars.


DaVinci's premiums, on the other hand, are as high as the market will bear. Based in Bermuda, it avoids U.S. taxes and faces no limit on profits. If a hurricane strikes, State Farm would lose no more than its investment in DaVinci -- $350 million at the end of last year.

State Farm officials would not disclose the company's current ownership interest in DaVinci. Nor would RenRe release the names of DaVinci's directors. Securities filings show that since 2008, State Farm has had an option to leave DaVinci, but as of December 2009 it had not exercised that right.

A spokesman for State Farm responded to questions from the Herald-Tribune with a two-sentence statement.

"Reinsurance exists to help insurers protect homeowners from major catastrophes," wrote spokesman Phil Supple. "In this instance, State Farm is simply an investor and not actively involved in this reinsurer's underwriting decisions." 

Stacked against State Farm Mutual's $92 billion in assets, the investment in DaVinci is small. The cash payout so far has been only $100 million in dividends split between State Farm and other investors, including the Ontario Teachers Pension Fund. But the impact on Floridians has been huge.  

DaVinci helped facilitate the transformation of Florida's home insurance market into one reliant on thinly capitalized, Florida-based companies and unregulated offshore reinsurance.

DaVinci, along with its partner RenaissanceRe, writes a specialized form of reinsurance that allows investors to launch and operate new Florida insurers with relatively little cash.

"It brings more capacity ... I would welcome State Farm to do more of it in a heartbeat," said Joe Graganella, president of two Florida insurance companies, Capitol Preferred and Southern Fidelity, which buy coverage from DaVinci and RenRe. Without that protection, it would be hard to do business, Graganella said.
The expansion of DaVinci's coverage in Florida, however, was also self-serving. 

DaVinci's presence made it easier for State Farm to withdraw from Florida's densely populated coastlines and in five years shed more than 865,000 customers -- by helping give those customers a place to go.  That, in turn, aided State Farm politically.

The company's withdrawal has put pressure on lawmakers to give concessions to the insurance industry, but is not so cataclysmic as to prompt state intervention to prevent it. In the end, Florida officials allowed State Farm to sharply raise rates and eliminate policy discounts while shifting to safer parts of the state and retaining its highly profitable auto insurance operation in Florida.

Earnings projections filed with state regulators show State Farm expects to collect as much premium in 2011 as it did before its exodus.

"State Farm has done a good job, an excellent job, in pulling the wool over the eyes of many of my colleagues in the House and Senate," said state Sen. Mike Fasano, a Pasco County Republican and a critic of State Farm. "They've convinced them that State Farm is poor and they're losing money and the Legislature is willing to come to their rescue."

OPPORTUNITY IN DISASTER

DaVinci emerged from the rubble of the World Trade Center.
Within weeks of the Sept. 11 terrorist attacks in 2001, it was created by State Farm and its Bermuda partner, RenaissanceRe, to capitalize on price increases that followed the disaster. State Farm's original $200 million stake gave it a 40 percent share in DaVinci and a seat on the board of directors. RenRe provided 20 percent of the money and manages the venture. At the outset, DaVinci was a nominal reinsurer for Florida. It specialized in low-risk contracts with large U.S. insurers such as Allstate and Zurich American. 

That changed after Hurricane Katrina in 2005.

To take advantage of rising reinsurance rates, DaVinci shifted its attention to hurricane risk, raising $375 million, including $25 million more from State Farm. It doubled its capacity to write reinsurance and refocused much of its business on Florida. 

Together, DaVinci and RenRe became the largest provider of hurricane coverage to Florida-based insurers. The rates they charged Florida insurers post-Katrina doubled, RenRe executives told stock analysts at the time. The company's pursuit of such distressed markets is a central part of its business philosophy.

"Where there's gunfire we don't run toward the bullets, but we like to get involved when there's still smoke in the air," RenRe CEO Neill Currie told the Herald-Tribune two years ago at a reinsurance gathering in Monte Carlo. "It works out pretty well, because we come riding in on the horse."

National reinsurance records show that in 2005, Florida-only insurers provided 23 percent of DaVinci's U.S. revenue. By 2009, it was 41 percent. 

Interviews and documents examined by the Herald-Tribune show DaVinci focused on selling the riskiest, hardest-to-get coverage most critical to Florida's weakest property insurers.

There is little competition in that niche, and reinsurance brokers said the price for such protection is among the highest in the world, sometimes more than 50 cents for $1 in coverage. " 'Opportunistic' is the absolute key word," said John DeMartini, vice president at Towers Watson, a national reinsurance brokerage. "DaVinci cleverly stepped into the void."

What's more, State Farm organized its withdrawal in a way that helped it keep control of its most profitable business -- car insurance. It created a list of insurers to which State Farm agents could direct dropped customers. 

Homeowners who switched to those companies could retain their multi-policy discounts. State Farm agents also keep their clients if they move them into the state-created Citizens, or to the pre-approved companies -- most of which are backed by DaVinci reinsurance coverage. Details about DaVinci were kept quiet enough that several longtime Florida State Farm agents told the Herald-Tribune they were not aware most of the pre-approved companies had a connection to State Farm.

EVERYWHERE, A BIT OF STATE FARM

Tampa resident Trudy Hensley canceled her State Farm home and car policies in 2009 after seeing her premium jump 66 percent in two years. 

State Farm's threat to drop Florida residents angered her enough to look for coverage elsewhere. She switched to Tower Hill. What she did not know was that the Tower Hill group, including four insurers under that umbrella, is by far DaVinci's largest Florida customer. 

The Tower Hill companies together paid State Farm's reinsurance venture more than $48 million in premiums from 2004 through 2009. "It's very unethical. I have no feelings of Good Neighborliness," Hensley said. "I'm not happy at all. It's another case of those big insurance companies taking advantage of people." 



Hensley's first reaction after being told about DaVinci was to ask for a list of companies that do not buy reinsurance from the company. It would be hard to find one.

By 2009, DaVinci, in partnership with RenRe, had provided some hurricane protection for 54 Florida insurers, including Allstate and fast-growing Universal Property & Casualty. The duo supplied the majority of hurricane protection for six companies, a list that included Security First, Argus and the now-defunct Northern Capital.

According to financial contracts reviewed by the Herald-Tribune, DaVinci was the third-largest commercial provider of hurricane reinsurance in Florida by the end of 2009. As State Farm dropped customers along the Florida coast, many remained in the State Farm family when they were picked up by companies using DaVinci reinsurance, including Northern Capital. The Miami-based insurer was started in 2007 by the owners of a security guard company. 

Alexander Anthony and Albert Fernandez put up $8 million and approached state regulators with an offer to take on more than 45,000 homeowners who had been dropped into a state-run program by State Farm and others.

Like many Florida start-up insurers, Northern Capital lacked the money to insure that many homes. It could have drastically scaled back its growth plans to fit the money it had. Instead, it devoted two-thirds of its income to buy reinsurance, letting it insure thousands more homes. 

Northern Capital concentrated its business in Miami-Dade County and adjacent areas -- a region State Farm closed to new business in 1992. Despite that, 90 percent of Northern Capital's private reinsurance in 2007 came from DaVinci and RenRe. The decision was a fertile opportunity for State Farm's venture.

Northern Capital paid DaVinci as much as 40 cents for every $1 in protection it received, akin to paying $80,000 a year to insure a $200,000 home.

A risk assessment done for state regulators shows Northern Capital's coverage from DaVinci had a technical value -- the average annual expected hurricane loss -- of no more than 4 cents per $1 insured. But DaVinci demanded to be paid 10 times the actual risk. 

That cost landed on homeowners. A Herald-Tribune review of scores of reinsurance contracts found similar terms for other companies. In 2009, Southern Fidelity paid 52 cents for every $1 of protection bought from DaVinci and RenRe. Homeowners Choice paid the two companies 43 cents per $1 of protection. Capitol Preferred also bought high-risk coverage last year at 57 cents on the dollar; Gulfstream paid 32 cents for every $1 of coverage. 

As Northern Capital illustrates, the contracts worked out better for State Farm than for companies that bought the coverage. With no hurricanes, DaVinci kept the $20 million it collected from Northern Capital.
In early 2009, state regulators accused Northern Capital of paying too much for reinsurance and put it under secret supervision. 
A year later, the company had so little money regulators shut it down.

Thursday, September 09, 2010

This is what I'm talking about


A few days ago, I posted some comments regarding my new property tax bill.
In essence, the City of Hallandale Beach and Broward County have chosen to substantially increase their tax rate instead of trying to adjust their budget to a new reality.

Downgrading and thrift are the way to go. Continuously raising taxes to support an inflexible path of so called "growth" is irresponsible. 
It is sad to observe that citizens' response has been almost inexistent. We are sitting back, while our pockets are being sacked. Broward is our county and Hallandale Beach is our city.
We should be able to make our elected officers  work for us, not against us. 

We are tolerating that, while services provided are diminished and degraded, our taxes go up every year.

This year will mean for many "homestead" beneficiaries, an approximate 10% increase, in a time of zero-inflation. 

Is this ridiculous? Tragic would be more like it. People losing their jobs, their homes; retirees whose savings have been almost wiped out by the economy, shouldn't be confronted with this type of issue.

I am reading today on Heraldtribune.com  which covers Florida West Coast an article about how Venice, Fl. has addressed the issue. A good example to follow.


Venice tax rate held flat

BUDGET: 4-to-3 vote means city will have to use $3 million out of reserves

VENICE, FL.  Despite advertising a potential 29 percent property tax rate increase for the 2010-11 budget, the City Council voted Tuesday to keep the rate flat.  The decision marks a continuation of a decade-long streak of either lowering or maintaining the tax rate.
Property owners will continue to pay 2.77 mills, the equivalent of $2.77 per $1,000 of taxable property value. 

The council must approve the budget and tax rate at a second public hearing Sept. 21.  After two hours of spirited debate, the council voted 4-3 to maintain the current rate.  Council members Emilio Carlesimo, Kit McKeon and Mayor Ed Martin opposed the idea. Council members Sue Lang, John Moore, Jim Bennett and Ernie Zavodnyik voted for keeping the rate the same.
"I fear we are kicking the can down the road," said McKeon, before the vote, expressing concern about dipping into savings to fund the operating budget. "To be fiscally responsible, we have to maintain the proper fund reserve."  But Lang, who is up for re-election along with Zavodnyik, said with the economy struggling, residents cannot pay more. Reading tax statements from residents who have seen their properties decline in value while they are paying more in property taxes, Lang said the council needs to cut spending and use reserves.  "We have a reserve fund" that is in good shape, Lang said. "I would rather have people go and spend that money in our local economy." 

The council will have to use about $3.1 million of its $9.2 million or so in reserves to sustain its $22 million budget for the fiscal year beginning Oct. 1. It will collect about $800,000 less in taxes than last year because of declining property values.

 City Manager Isaac Turner has laid off four employees and left jobs unfilled to balance the budget. He expressed concern about deficit spending.  "We are below what your goal is for reserves," Turner said. "We will need to immediately identify where we are going to make that up."  Before the vote, Zavodnyik proposed eliminating city provided health insurance for council members. Carlesimo made a motion to eliminate council member pensions, provided by the state after six years.

City Attorney Bob Anderson said the council could not vote on the measures because they did not advertise them in advance.  Before the vote, some residents urged the council to not raise the property tax rate.  "It's been nothing but increases," said Mike Rafferty, a resident of Bay Indies, the city's largest mobile home community.

He said the county appraised the community about 18 percent higher than last year. A tax rate increase would mean his taxes would go up, he said.  "If you don't want to take it out of a rainy day fund, don't take it out of my pocket," he said. 

Venice Taxpayers League President Gary Budway said the city should have cut the budget across  the board and suggested Venice consider combining its fire department with the county and hiring a city attorney, rather than contracting with Anderson.








Monday, August 02, 2010

The Real, Deep Cause of Real Estate Troubles

More than in any other branch of the country's economy, real estate crisis might be the thermometer of US middle class' distress and the looming disappearance of the American dream of home-ownership.

Mortgage abuses and frauds, banks games of hedges, CDO's and Credit Swaps, uncontrolled financial schemes are of course signs of the bad course we've been on. However, they are not the whole story.

They are in fact relatively correctable issues that can be addressed with regulations and government controls.

What hasn't been addressed and will not be any time soon is the continuous deterioration of employment and salaries.

We hear our legislators and our president planning on the creation of new jobs and new opportunities; at the cost of billions to the taxpayer.

This sounds so ridiculous when we read every other day about thousands of American jobs lost, small businesses closing doors, corporation shipping away their research and development departments, their calls centers, their accounting and their software engineering to India or China.

Who are we going to sell these condos and these homes to? Or are we going to end up as humorously said by somebody "selling insurance policies to each other" ?

A substantial part of realtors' activity has been switched to selling a large part of whatever is being sold now, to foreigners, Canadians, French, Japanese, you name it. Because these people are gradually becoming the only ones who can afford buying a home in America. And I am not being xenophobic, just observing facts.

Read for example the following article from the St. Petersburg Times in Tampa. It's the symbol of our times.
Observe that we are not losing blue collar jobs. They have been gone long time ago. It's not about U.S. Steel, or G.M. assembly workers.
What we see now are the very same high-tech class of workers that we are supposed to become, by going back to school to retool our knowledge, learn, and prepare for the new times and the new careers. These jobs, businesses, technologies, that were supposed to keep our country in its traditional position of economic dominance, and sustain the prosperity and livelihood of our middle class.

Read on:


PricewaterhouseCoopers to lay off 500 workers, mostly in Tampa
PricewaterhouseCoopers will lay off about 500 information technology workers, most of them in Tampa, as part of a broader push to outsource to cheaper labor.
The news is an untimely blow to Tampa Bay's economy, which is already battling a 12 percent unemployment rate, the fifth-highest among the country's largest metro areas. It also comes amid a recent resurgence in mass layoffs and growing concern nationally that the economy might slip into a double-dip recession.
"It's just terrible news," Tampa Mayor Pam Iorio said Friday. "It's a terrible job market for those people to find other jobs and I'm very sorry to see it happen. … They're moving jobs away from this community and that's a negative. And it's a negative to our national economy when jobs are moved overseas."
PWC spokesman Jonathan Stoner said the consulting powerhouse employs 1,100 in its information technology group nationwide. Of the 600 remaining employees, most will stay in its Tampa hub, he said. With four locations and 1,850 employees in the Tampa Bay area as of early this year, PWC has been one of the region's top employers. In March, it ranked No. 3 among large bay area companies in the Times' Top Places to Work survey.
Iorio said PWC did not approach the city asking for incentives to keep workers here. "If they're making a fundamental decision to move jobs overseas to reduce labor costs, that's a business decision," she said, "and I don't think there's anything any American city can do to compensate for that."
Stoner said the decision stems from a combination of PWC's information technology groups in the United States and United Kingdom.
"The U.S. and UK firms are combining governance, organizational structure and business processes and a single, Indian-based vendor will provide service to both member firms," he said.
Other reports identified Tata Consultancy Services of Mumbai, India, as the vendor, but Stoner said the company does not comment on clients or third-party contracts.
He also disputed one report that employees were told they would have to reapply for positions at Tata. "What we have told our employees is that they are all to be encouraged to apply for other positions at the firm, at PWC."
Throughout the recession, corporations have continued to outsource jobs to Indian vendors to save money, with Tata often reaping the rewards.
Idearc Media, which publishes the Verizon Yellow Pages, laid off 150 employees in St. Petersburg in December as it transferred much of its publishing business to Tata. Ratings agency Nielsen Media Research also turned to Tata for cheaper labor in laying off 170 information technology employees at its Oldsmar complex in 2008 and 57 in November.
Workers found out about the Pricewaterhouse layoffs on Thursday, coming in the wake of PWC cuts elsewhere statewide, including the shutdown of its tax practice office in Orlando.
A half-dozen workers exiting PWC's Lakepointe office complex on Dr. Martin Luther King Jr. Boulevard on Friday said they were in shock, but were warned by managers not to speak publicly. Workers said the company had not given details on severance packages nor a specific time line, except to indicate cuts would likely be completed by the end of the year.
One worker, an Indian contractor for PWC, said the project he's working on will likely be shut down, leaving him with bittersweet emotions: He's sad for his colleagues here and happy for people in India.
As recently as a month ago, Florida economists were pointing to a slowdown in mass layoffs as a sign that the economy was starting to recover.
But July has been a particularly brutal month based on recent mass layoff notices filed with the state. Among them: 892 workers affiliated with the Kennedy Space Center; 320 with the GEO Group in Graceville; 81 at LifeLink HealthCare Institute in Tampa; 245 at Lockheed Martin Corp.; 344 at Kehe Distributors; 221 at Mosaic Fertilizer in Fort Meade; 100 at Bank of America's Idlewood Avenue location in Tampa; and 67 at Enterprise Leasing in Tampa.
All told, 16 layoff notices have been filed in July affecting 2,864 workers statewide. That doesn't include this week's cuts by Pricewaterhouse.

And, as a Spanish poet said: The rest is silence

Henry B. Nathan is a Real Estate Professional. Please visit our website and learn about:
     Aventura Homes

Tuesday, July 27, 2010

Tax Cuts - Income Tax Calculator

I just found a very useful resource:


Just in case you are not aware: In 2001 and 2003, under the former Bush administration, there were important tax cuts.

They will expire very soon. And a decision must be taken by Congress on either keeping the tax cuts, or eliminating them totally or partially.

The Obama administration is proposing keeping the tax cuts for families earning less than $250,000 a year.
On this website you can quickly calculate how their decision could affect you. There are 3 case scenarios:
1) All tax cuts remain.
2) All tax cuts expire and are not renewed.
3) Tax cuts remain only for the middle class (income of less than $250,000 per year).

Can I wish you to make less than $250,000 next year? Don't know yet.

Good Luck. And don't be afraid to become a millionaire!



Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
Visit my website: http://www.condo-southflorida.com
where you can search for Aventura Condos, Florida Condos, Sunny Isles Condos,