Property Taxes, Home Insurance and Your Standard of Living

How do Property Taxes and Insurance affect your standard of living?

It always amazes me how people look only at the price of a product and neglect to consider the true cost of ownership. For most a car purchase is based solely on emotion and the sticker price. They never bother to check on insurance rates, cost of repairs and maintance. In Real Estate there can be an even greater impact. One which can determine whether you live like a pauper or a king.

On Sun, Apr. 15, 2007 MARTHA BRANNIGAN reported in the Miami Herald, South Florida Homeowners Feel the Tax Imbalance. She writes, "Claus and her husband, Brad Wagshul, a federal law clerk, bought their 1,473-square-foot house for $215,000 in 2000. Their tax bill was $3,482 last year. But right next door, Erin Kobetz and Joshua Diem, who bought a slightly smaller three-bedroom, two-bath home on an identical lot in 2004, were taxed $6,323 -- 82 percent higher.

Among the largely comparable homes along Southwest 63rd Place, property taxes last year ranged from $2,278 to $9,432. Some neighbors -- such as those with second homes and rental properties -- aren't eligible for the precious 3 percent cap on tax increases, and they are paying the most of all.

A block away live Ximena and Kurt Prelle, who bought their home at 8215 SW 63rd Pl. in 2003 for $280,000, before the hot run-up in prices that boosted some homes in the neighborhood above the half-million-dollar mark. But you can't tell their good fortune from their property taxes. The Prelles, who are from Peru, are in the United States on work visas and haven't yet obtained permanent U.S. residency. That means they aren't eligible for the homestead exemption or Save Our Homes cap. So every year, their taxes have soared along with the rising property values. The Prelles forked over $8,550 for 2006 property taxes on their three-bedroom, two-bathroom house, which was assessed at $412,134.

In Panama I have had people see home prices as an 'incredable bargain' or 'too pricey' based on where they are from. Some have even said, "I can buy a place in Florida for that!" Well, yes maybe you can but have you considered the true cost of ownership and how that affects your lifestyle?

In his Blog, developer Sam Taliaferro writes, "This weekend I had a visitor from Florida who shared with me that his insurance on his home in Boca Raton is over $7000 a year. On top of that the taxes have been increasing each year to where it is over $8000 for an under 2000 square foot home. When you compare Panama (And Valle Escondido specifically) where the insurance on a 2500 square foot home is about $450 and the property taxes are zero for the next 20 years, you can see why Panama has become so popular. You can actually live very comfortably here in a master planned community with great amenities just on the $1200 a month you save on these two expenses." (Sam Taliferro is an American expat many consider the pioneer who put Panama on the map with his first class development, Valle Escondido in the mountain town of Boquete.)

What would an extra $1,200 a month mean to your standard of lving?

Cheap Quality Health Care, Low, Low Insurance Rates, NO Property Taxes on new construction PLUS Fresh Produce, Groceries; Entertainment and Dining Out at about Half the cost of comparable American fare and you can see why Panama has become the number one retirement spot for the baby boomers!

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