Northwest Florida Realtor: June 2007

Doubling Your Investment: Do Income-Generating Properties Pay?

Stocks, Bonds, or Shelter

Buying or selling a house is one of the biggest decisions most people will ever make with their finances and their lifestyle. Getting the best bargain in the purchase or making the most profit on the sale give buyers and sellers so much to think about that many may never stop to consider keeping that old house - or buying another - as an income-generating property. But the rewards, in savings, profits and problem-solving, can be high.

One option for buyers who otherwise might consider home prices beyond their reach is the property that pays for itself: a house you live in part of and rent the rest of. This offers not only an obvious balance of cost and income, but perhaps lesser-known benefits in taxes and mortgage. The rental units can be depreciated over time; considered to offset the rental income, this can lower your taxes on that income. At the same time, the rent's addition to your finances helps you qualify for a larger mortgage, and investors who occupy their rental properties can, under certain conditions, get interest rates lower than those who do not. (A professional like those at ERA Mortgage can tell you more.) Of course you'll want to decide if the demands of being a live-in landlord are for you (and find out if rent-control laws in your area might limit the return on your investment).

If being an offsite landlord is more appealing, you could always keep your current home as a rental after you move into the new one. Your long-tern familiarity with the home's features and condition could lend a certain confidence both to yourself and your potential tenants. As with any investment property, you'll first want to calculate whether the rental income will make up for the needed expenses. (This is another consideration in which a qualified real estate sales professionals can help, with his or her knowledge of the local rental market and its prospects over time.) And of course being a long-distance landlord has its headaches too, so you have to enjoy the challenge and be ready to meet the needs.

But if solving problems appeals to you, then you may even prefer a fixer-upper to your familiar former home. With a thorough inspection to answer any questions, and a realistic budget and disciplined schedule to handle all improvements, your outlays can prove to be well worth it. Renovations can range from reconfiguring the floorplan to simply replacing a now-unfashionable décor. The attraction of "move-in" quality can draw renters who share your appreciation of state-of-the-art living but not your passion for the do-it-yourself effort behind it.

Owning an income-generating property is not for everyone, but - from younger buyers offsetting their purchase costs, to seniors easing the expenses of their retirement years - it can be for all kinds of people. Talk to a real estate sales professional to find out if rental property would be double trouble or two times the success.

Team Sold

Brandon Jordan

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

1.

Clean house! The first rule of moving is to get rid

of unnecessary clutter before you go. That way,

you won't have to find a place for those rarelyused

items when you get to your new home. Host

a garage sale or donate goods to a local charity.

2.

Get organized. Two months before your move,

keep track of all your mail and make a list of people,

subscriptions, and organizations that should

be notified. Contact the postal service to change

your address. Don't forget about your bank, your

insurance agent, your doctor and your vet.

3.

Cancel and re-order. Make another list that includes

utilities such as telephone, gas, electric, water,

cable and Internet access. Remember to contact

your pest control, lawn care, window cleaning

and other services to let them know about your

move. Proper planning insures that you won't be

paying for services you're not using!

4.

Be "mover friendly". If you're using a professional

moving company, make yourself available to answer

questions on both ends of the move - loading

and unloading. Review the home inventory paperwork

and make sure the driver has your contact

information and details of your delivery.

5.

Be safe. Whether you're hiring professionals or doing

it yourself, remove all rugs, low hanging items

and tripping hazards. Keep walkways clear at all

times. Arrange for someone to take care of your

children and pets while everything is being packed

and loaded onto the moving truck.

6.

Know what you're packing. Label boxes in detail,

including contents and the room in which they

belong. This will save time and questions for you

and your movers. Pack essentials like a change of

clothes, snacks, and the coffee maker and take

them with you.

7.

Know what NOT to pack. Charcoal lighter fluid,

pesticides and paint thinner are a few of the items

that professional moving companies won't touch.

Make arrangements to transport these items or

leave them with a neighbor. Valuables such as cash,

jewelry and important documents should stay with

you or be shipped via trackable shipping service.

8.

Check and double check. Before the moving van

leaves, make sure everything is loaded or unloaded,

for both ends of your move. Check the attic,

basement, closets, and garage for things you may

have forgotten. If something is damaged during

the move, notify your moving company immediately

and take photographs of the damaged item.

9.

Keep smiling! Moving can be manageable, with

the right attitude and thoughtful preparation. It will

all be over soon -- and you'll have days, weeks or

even months (!) to unpack at your leisure. Throw

yourself a "welcome home to your new home" party

and meet your new neighbors.

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

The City Council is reviewing the updates to the City's Impact Fees applied to new development applications. Included in the review process is consideration of Linkage Fees to help fund attainable workforce housing. These fees would apply principally to new commercial and lodging construction with funds applied to offset the cost of housing for Destin wokers who desire to live in this community. You can go to the below link and click on Daft Ordinance: pg 30 will give you an overview of the drastic changes on the proposed Impacts.  http://www.cityofdestin.com/index.php?src=news&refno=130&category=News

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

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(2) By such other appropriate method as the City Council may have

accepted prior to the effective date of this article for particular park capital

improvements, or

(3) By fair market value established by private appraisers acceptable to the

city.

Credit for the dedication of park land shall be provided when the property has been

conveyed at no charge to, and accepted by, the city in a manner satisfactory to the

City Council.

(b) Applicants for credit for construction of park capital improvements shall submit

acceptable engineering drawings and specifications, and construction cost estimates

to the city manager. The city manager shall determine credit for construction based

upon either these cost estimates or upon alternative engineering criteria and

construction cost estimates if the city manager determines that such estimates

submitted by the applicant are either unreliable or inaccurate. The city manager shall

provide the applicant with a letter or certificate setting forth the dollar amount of the

credit, the reason for the credit, and the legal description or other adequate

description of the project or development to which the credit may be applied. The

applicant must sign and date a duplicate copy of such letter or certificate indicating

his/her agreement to the terms of the letter or certificate and return such signed

document to the city manager before credit will be given. The failure of the applicant

to sign, date, and return such document within 60 days shall nullify the credit.

(c) Except as provided in subparagraph (d), credit against impact fees otherwise due

will not be provided until:

(1) The construction is completed and accepted by the city, the county, or

the state, whichever is applicable; or

(2) A suitable maintenance and warranty bond is received and approved by

the city manager when applicable.

(d) Credit may be provided before completion of specified park capital

improvements if adequate assurances are given by the applicant that the standards set

out in subparagraph (c) will be met and if the feepayer posts security as provided

below for the costs of such construction. Security in the form of a performance

bond, irrevocable letter of credit, or escrow agreement shall be posted with and

approved by the City of Destin in an amount determined by the city manager. If the

park construction project will not be constructed within one year of the acceptance

of the offer by the city manager, the amount of the security shall be increased by ten

percent compounded, for each year of the life of the security. The security shall be

reviewed and approved by the City Council prior to acceptance of the security. If the

park construction project is not to be completed within five years of the date of the

feepayer's offer, the City Council must approve the park construction project and its

scheduled completion date prior to the acceptance of the offer by the city manager.

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

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Monies, including any accrued interest, not assigned in any fiscal period shall be retained in the same

park impact fee trust fund until the next fiscal period, except as provided by section 19.01.10.

E. Funds may be used to provide refunds as described in section 19.01.10.

19.01.10. Refund of fees paid.

A. Any funds not expended or encumbered by the end of the calendar quarter immediately

following six years from the date the park impact fees was paid shall, upon application of the then

current landowner, be returned to such landowner with interest at the rate of four percent per

annum, provided that the landowner submits an application for a refund to the city manager within

180 days of the expiration of the six-year period.

19.01.11. Exemptions and credits.

A. Any claim of exemption must be made no later than the time of application for a certificate of

occupancy. Any claim not so made shall be deemed waived. The following shall be exempted from

payment of the impact fee:

1. Alterations or expansion of an existing building where no additional residential units are

created and where the use is not changed.

2. The construction of residential accessory buildings or structures.

3. The replacement of a destroyed or partially destroyed building or structure with a new

building or structure of the same size and use.

4. The installation of a replacement mobile home on a lot or other such site when a park

impact fee for such mobile home site has previously been paid pursuant to this article or

where a mobile home legally existed on such site on or prior to the effective date of this

article.

5. The construction or placement of any non-residential building or structure, or the

installation of a non-residential mobile home.

B. Credits:

1. Park land and/or park capital improvements may be offered by the feepayer as total or

partial payment of the required impact fee. the offer must specifically request or provide for

a park impact fee credit. If the city manager accepts such an offer, whether the acceptance is

before or after the effective date of this article, the credit shall be determined and provided

in the following manner:

(a) Credit for the dedication of land shall be valued at:

(1) 115 percent of the most recent assessed value by the property appraiser,

or

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

 

may adjust the fee to that appropriate to the particular development. The adjustment may include a

credit against the fee otherwise payable up to 50 percent for private recreational facilities constructed

or deed restricted or otherwise set aside for recreational purposes by the feepayer which serve the

same purposes and functions as set forth for public parks in the City of Destin Comprehensive Plan.

Determinations made by the city manager pursuant to this paragraph may be appealed to the City

Council by filing a written request with the city manager within ten days of the city manager's

determination. Failure to file an appeal shall constitute a waiver of the feepayer's right to challenge

the city manager's determination regarding a feepayer's independent impact fee calculation study.

19.01.06. Payment of fee.

A. The feepayer shall pay the park impact fee required by this article to the city manager prior to

the issuance of a certificate of occupancy.

B. All funds collected shall be promptly transferred for deposit in the park impact fee trust fund as

established by section 19.01.08 and used solely for the purposes specified in this article.

19.01.07. Park impact fee districts.

A. There is hereby established a park impact fee district which shall be all lands lying within the

incorporated limits of the city.

19.01.08. Park impact fee trust funds established.

A. There is hereby established a park impact fee trust fund for the park impact fee district

established by section 19.01.07.

B. Funds withdrawn from this account must be used in accordance with the provisions of section

19.01.09.

19.01.09. Use of funds.

A. Funds collected from the park impact fee shall be used solely for the purpose of acquiring,

equipping, and/or making capital improvements to park facilities under the jurisdiction of the City

of Destin, the county, or the State of Florida, and shall not be used for maintenance or operations.

B. Funds shall be expended in the order in which they are collected.

C. In the event that bonds or similar debt instruments are issued for advanced provision of park

capital improvements for which park impact fees may be expended, impact fees may be used to pay

debt service on such bonds or similar debt instruments to the extent that the improvements

provided are of the type described in paragraph A. above and are located within the park impact fee

districts established by section 19.01.07.

D. At least once each fiscal period, the city manager shall present to the City Council a proposed

capital improvement program for parks, assigning funds, including any accrued interest, from the

park impact fee trust fund to specific park capital improvement projects and related expenses.

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

"OLD" FEE SCHEDULE

LAND USE TYPE (PER/UNIT) FEE

Residential unit type:

Single-family detached $159.99

Multi-family 113.03

Resort residential unit 113.03

Hotel/motel 50.46

All other 159.99

"NEW" FEE SCHEDULE

LAND USE TYPE (PER/UNIT) FEE

Residential, less than 500 sq. ft., per dwelling unit $908

Residential, 500 - 749 sq. ft., per dwelling unit $1,144

Residential, 750 - 999 sq. ft., per dwelling unit $1,359

Residential, 1,000 - 1,499 sq. ft., per dwelling unit $1,634

Residential, 1,500 - 1,999 sq. ft., per dwelling unit $1,944

Residential, 2,000 - 2,999 sq. ft., per dwelling unit $2,338

Residential, 3,000 - 3,999 sq. ft., per dwelling unit $2,780

Residential, 4,000 sq. ft or more, per dwelling unit $3,165

Mobile Home/RV Park, per pad $2,182

Hotel/Motel, per room $1,183

1. If a certificate of occupancy is requested for mixed uses, then the fee shall be determined

by using the above schedule and apportioning the space committed to uses specified on the

schedule.

2. In the case of change of use, redevelopment, or expansion or modification of an existing

use which requires the issuance of a certificate of occupancy, the impact fee shall be based

upon the net positive increase in the impact fee for the new use as compared to the previous

use. The city manager shall be guided in this determination by the supporting documents of

the City of Destin Comprehensive Plan, City of Destin Zoning Ordinance, and by

considering demographic or other documentation which is available from state, local and

regional authorities.

B. If a feepayer opts not to have the impact fee determined according to paragraph A. of this

section, then the feepayer shall prepare and submit to the city manager an independent fee

calculation study for the land development activity for which a certificate of occupancy is sought.

The documentation submitted shall show the basis upon which the independent fee calculation was

made. The city manager shall consider the documentation submitted by the feepayer but is not

required to accept such documentation as he/she shall reasonably deem to be inaccurate or not

reliable and may, in the alternative, require the feepayer to submit additional or different

documentation for consideration. If an acceptable independent fee calculation study is not

presented, the feepayer shall pay the park impact fees based upon the schedule shown in paragraph

A. of this section. If an acceptable independent fee calculation study is presented, the city manager

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

 

Destin's City Council has called a special meeting this evening to review a proposal to significantly increase Impact Fees.  Members are encouraged to attend the meeting which begins at 6:00 p.m. at the Destin City Hall Annex, 4100 Two Trees Road.  Information on a proposed ordinance and its financial impact are available on the City of Destin web site. 

This message was sent to okaloosamls@aol.com on behalf of   Emerald Coast Association of REALTORS(r)

 

 

7. The word "includes" shall not limit a term to the specific example but is intended to

extend its meaning to all other instances or circumstances of like kind or character.

8. "City manager" means the city manager or the municipal officials he/she may designate

to carry out the administration of this article.

19.01.03. Definitions.

A. A "feepayer" is a person applying for the issuance of a certificate of occupancy.

B. A "capital improvement" includes parks planning, land acquisition, site improvements,

buildings, and equipment, all with an expected life of three years or more, but excludes maintenance

and operation.

C. "Certificate of occupancy" is the approval issued by the building official after satisfactory

completion of construction of a building or structure in accordance with the technical codes and

plans, and after the final inspection is completed.

D. "Private recreational facility" is any recreational facility which is not owned by or dedicated to

any governmental entity.

E. "Unit" in this article shall not be considered the same as a "lodging unit."

19.01.04. Imposition of park impact fee.

A. Any person who, after the effective date of this article, applies for a certificate of occupancy, is

hereby required to pay a park impact fee in the manner and amount set forth in this article.

B. No new certificate of occupancy, for any activity requiring payment of an impact fee pursuant to

section 19.01.05.A., shall be issued unless and until the required park impact fee hereby has been

paid.

C. Any development that received a final development order or development permit on or before

[the date of adoption of the ordinance creating the "new" fee schedule] shall be subject to the "old"

fee schedule in Section 19.01.05, provided that development proceeds to issuance of the certificate

of occupancy without expiration of the development order or development permit. All other

development shall be subject to the "new" fee schedule in Section 19.01.05.

D. The City may provide estimates of impact fees at time of development order, or building permit

for projects not requiring a development order, but such estimates shall not be binding and shall not

exempt applicants from paying according to the fee schedule in effect at time of certificate of

occupancy.

19.01.05. Computation of the amount of park impact fee.

A. At the option of the fee payer, the amount of the park impact fee may be determined by the

following fee schedule:

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

 

2

B. This article is intended to assist in the implementation of the City of Destin Comprehensive

Plan.

C. The purpose of this article is to regulate the development of land so as to ensure that new

development bears a proportionate share of the cost of capital expenditures necessary to provide

parks and park capital improvements in the City of Destin.

D. This article shall not apply to development for which the City of Destin is the applicant.

19.01.02. Rules of construction.

A. The provisions of this article shall be construed so as to effectively carry out its purpose in the

interest of the public health, safety, and welfare.

B. For the purposes of administration and enforcement of this article, unless otherwise stated, the

following rules of construction shall apply to the text of this article:

1. In case of any difference of meaning or implication between the text of this article and

any caption, illustration, summary table, or illustrative table, the text shall control.

2. The word "shall" is always mandatory and not discretionary; the word "may" is

permissive.

3. Words used in the present tense shall include the future; and words used in the singular

number shall include the plural, and the plural the singular, unless the context clearly

indicates the contrary.

4. The phrase "used for" includes "arranged for," "designed for," "maintained for, or

"occupied for."

5. The word "person" includes an individual, a corporation, a partnership, an incorporated

association, or any other similar entity, but does not include the City of Destin.

6. Unless the context clearly indicates the contrary, where a regulation involves two or

more items, conditions, provisions, or events connected by the conjunction "and," "or" or

"either...or," the conjunction shall be interpreted as follows:

(a) "And" indicates that all the connected terms, conditions, provisions, or events

shall apply.

(b) "Or" indicates that the connected items, conditions, provisions, or events may

apply singly or in any combination.

(c) "Either...or" indicates that the connected items, conditions, provisions, or

events shall apply singly but not in combination.

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.

 

 

 

PROPOSED IMPACT FEE ORDINANCE AMENDMENTS

Article 19 IMPACT FEES

19.01.00. Parks impact fee.

19.02.00. Public library impact fee.

19.03.00. Police protection impact fee.

19.04.00. Transportation Road impact fee.

19.01.00. Parks impact fee.

19.01.01. Intents and purposes.

A. Legislative findings:

1. The City Council has determined that the City of Destin must expand its park capital

facilities in order to maintain current park standards if new development is to be

accommodated without decreasing current standards. This must be done in order to

promote and protect the public health, safety, and welfare.

2. The City Council has determined that the Florida Legislature through the enactment of

Chapter 163, Part II, Florida Statutes, encourages local governments to adopt innovative

approaches to development.

3. The City Council has determined that the authority to adopt this ordinance is pursuant to

section 1.01.(b) of the City Charter, and Section 166.021, Florida Statutes.

4. The City Council has determined that the imposition of impact fees is one of the

preferred methods of ensuring that development bears a proportionate share of the cost of

park capital improvements necessary to accommodate such development. This must be done

in order to promote and protect the public health, safety, and welfare.

5. The City Council has determined that each of the types of land development described in

section 19.01.05.A, will create a demand for the construction, equipping, acquisition, or

expansion of park capital improvements.

6. The City Council has determined that the fees established by section 19.01.05.A. are

derived from, based upon, and do not exceed the costs of providing additional parks and

park capital improvements necessitated by the new land developments for which the fees are

levied.

7. The City Council has determined that the report entitled "Technical Memorandum of

the Methods Used to Calculate Public Facility Costs," dated August, 8, 1997 "Impact Fee

Study for Transportation, Parks, Library and Police Facilities," dated June 2007, sets forth a

reasonable methodology and analysis for the determination of the impact of new

development on the need for and costs for additional parks and park capital improvements

in the City of Destin.

Florida Real Estate with Brandon Jordan, your Northwest Florida Realtor and ActiveRain featured Realtor for Okaloosa County since 2007. We provide this information and much more on our site for you at no charge, so please remember us when you're looking to buy or sell real estate.