Posts Tagged ‘Jersey shore’

Recreation Subsidies

Monday, November 30th, 2009

When the recent “Veterans Day Storm” slammed the east coast November 11-15, some Cape May County island homeowners suffered water damage and wind damage to their properties.  For most, it was business as usual and they cleaned up the mess and moved on.  It’s life at the shore for those in the few scattered low-lying streets in Wildwood, North Wildwood, and West Wildwood.

The beaches are another story.  So that local governments could score Federal Emergency Management Agency (FEMA) money, New Jersey Governor Corzine obligingly declared a state of emergency.  The damage to Cape May County, originally ballparked at $89 million, was determined to actually be $27.3 million.  Those beach erosion figures are based on $10.40 per cubic yard of sand to be replaced.  Sand for dunes is calculated up to $20 per cubic yard.

The bigger question here is whether the U.S. government should be subsidizing beaches.  Is it fair to someone living in Iowa to pay for beaches in Avalon rimmed with $4 million vacation homes?

What would homeowners who cry for FEMA beach funds in their communities think if the federal government started funding ski resorts?  Heck, they want snow by Thanksgiving to have a good year.  Should we be subsidizing snowmaking operations at the hundreds of ski slopes throughout the U.S.?  Let’s take it a step further and put refrigeration lines under each ski slope.  That’ll make the millions of American skiers happy.

While we’re at it, why not have FEMA subsidize all the golf courses in America?  In a drought, ship in tanker trucks of fresh water from the Great Lakes and major rivers.  That would please the 24 million Americans who play golf.  They want lush green golf courses, not those spotted with burned out patches of grass.

Do you see my point?

With oceans rising as the Arctic, Greenland, and Antarctic melt, the beach erosion problem has intensified.  Many local shore towns will be doing two beach replenishment projects this year.  Ten years from now, it may necessitate three or four a year, which isn’t going to happen.  FEMA will finally say, “No Mas”.

So it’s time to be proactive.

Where beaches habitually wash out in storms, it is time to rip rap with massive walls of boulders, much like the seawalls recently constructed at the north end of both North Wildwood and Avalon at the inlets.  FEMA should offer to pay for the rip rapping of the ocean.  Sure it means less beaches, but once the seawalls are built, the beaches will come and go.  After all, beaches are always in transit.  It’s just in the last 100 years that civilization decided they’d try to tame Mother Nature.

There will always be plenty of beaches in Cape May County, but people will have to search them out.  Here today, gone tomorrow, but another beach pops up a mile away.  And certain beaches, like Wildwood, which is over 1,000 feet in depth, will always be there.

Like it or not, the days of FEMA beach handouts are numbered.  As they should be.

- Mountain Man

Tax Credits for Homebuyers

Monday, November 30th, 2009

The popular homebuyer tax credit program, which was due to expire November 30, 2009, has been extended to April 30, 2010.  Adding to the good news is the fact that it is no longer confined to just first-time homebuyers.

The rules are that the first-time homebuyer can not have had interest in a principal residence for three years prior to the purchase.  A current homeowner must have used their existing home as a principal residence for five of the previous eight years.  The first-timer gets an $8,000 credit ($4,000 if married filing separately), while the existing homebuyer gets a $6,500 credit ($3,250 if married filing separately).

All other provisions of the Tax Credit are the same for both first-time homebuyers and current owners.

The prospective property must be put “under contract” before May 1, 2010 and the transfer must take place by July 1, 2010.  The income limits are $125,000 for a single person and $225,000 for a married couple (up from $75,000 and $150,000) for a full tax credit.  A partial tax credit is given for $125,000 to $145,000 for singles and $225,000 to $245,000 for married couples.  Above those incomes is no tax credit.

The maximum price of the property being purchased is $800,000.  The property transfer can not be between dependents (parents and child or grandchild) and documentation of the purchase must be attached to the tax return.  Parents can still, however, co-sign on the mortgage and the child gets the tax credit.

All in all, the homebuyer tax credit is a good deal.  If only it was permanent.

- Mountain Man

The Voice

Wednesday, January 16th, 2008

Who do you think has the most powerful voice in the world?  You know, the one who most influences people’s opinions. 

It’s not George Bush.  It’s not some presidential candidate or Hollywood star, professional athlete or music idol.  It’s not even the Pope or the Dalai Lama or Bill Gates. 

It’s the MEDIA.  Yes, the media decides what is important and what isn’t.  Who’s good and who’s evil, what is right and what is wrong.  It sways opinion, builds concensus.  It can give someone their 15 minutes of fame or tear down and destroy a person.  Consider how the media has influenced your perception of Anita Bryant, Jimmy the Greek, Vietnam, Patty Hearst, Thomas Eagleton, Walter Mondale, Muhammed Ali, Richard Nixon, hippies, the World Trade Center bombing, John Dean, Mel Gibson, Bill and Hillary Clinton, Paris Hilton, and Hurricane Katrina.  And …, the real estate market.

The real estate market was the darling of the media from 2001 to 2005.  “Buy, buy, buy”, they said, and people did.  But then that story got old and tired.  Time for a new slant.  “There’s gonna be a bust” became the new story.  Folks backed off from the real estate market, choosing instead to sit on the fence to see what happens.  Actually, most were just waiting for the media to say it’s okay to buy property again.  The media hasn’t yet bestowed its blessing on that notion.

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In the second half of 2007, our real estate agency noticed a decided upturn of business in our Cape May County, New Jersey area.  Buyers were coming back.  It seemed to be people mostly in their 50′s and 60′s who came to the realization “What am I waiting for?  I’m not getting any younger”.  If they wanted their piece of the pie at the Jersey shore, now was the time.

 The trend continues here in early 2008, making us wonder when the media will catch on.  Interest rates are under 6%, there is plenty of inventory to choose from, and prices are down about $100,000 from 2004.  To the opportunist, the conditions are perfect to get a good deal.

To those unwittingly hog-tied by the media, they’ll continue to sit on the sidelines.  But for folks who have worked hard all their lives while dreaming about owning a condominium or house at the shore, their time is now!

- Mountain Man

To read more about the real estate market in Cape May County, New Jersey go to our website at http://www.JewellRealEstateAgency.com and click on “Newsletters”.  You’ll find years worth of our Newsletters, full of our thoughts and observations.