[twinkletwinkle22]

I lived in Florida many years but not in a $$$ mansion. i saw many concrete block basic homes from the 70s on waterfront locations. When they were listed for sale the insides of those homes were very basic also. Sensible people know the value is in the land not the home and do not put money into them that can flooded out or blown away.

Those concrete block buildings are survivors but roofs may have been patched or replaced over the years.
If you want marble and granite and fancy wood inside then you better build well above flood level with lots of concrete.

[City Guy997S]

Originally Posted by FL_Expert

Does anyone on the island actually have a mortgage? I mean, is traditional financing even possible on a $50m house?

Sure...........if you could have gotten a 5% loan and then put your 50 million in a fund paying 8% you can "make" 3% on 50 million! The banks would love you!

But for most of the world the interest isn't deductible past 1mm or something anyway and then property taxes are no longer deductible past 10-15K or something small. But if a "business" owned the property then all of that is likely deductible.

[LKJ1988]

The man that dwells in marble halls can't high hat me one bit when nature calls.

[1insider]

Originally Posted by twinkletwinkle22

Sensible people know the value is in the land not the home and do not put money into them that can flooded out or blown away.

.

If that land ever floods the value may not be as much as the owner hoped it'd be. What was once desirable can become a liability.

[NORTY FLATZ]

Originally Posted by cw30000

Climate change does not apply if you are political connected and/or wealthy. If you are, you can also help by buying CO2 credit from your own company

You kinda got it backwards. Those "credits" to which you refer, can be sold to other entities, annually.

For some companies that have more credits than needed, this can add up to millions of dollars, each year.

[Mathguy]

Originally Posted by City Guy997S

https://www.fa-mag.com/news/ultra-ri...isk-74553.html

Even for Star Island, the most exclusive enclave in Miami, the bill is a shocker: $622,000.

But, only last year, the same policy cost $200,000.

So it goes across the nation in the rarefied playgrounds of the rich, where price — and, it seems, risks of climate change — are no object.


My dream would be to own an older waterfront home, $0 insurance and when mother nature wrecks it, oh well tear it down and build a mansion (true value is in the lot, not the actual structure). The deductible is usually 3-5% of the value of the home so if the house is worth 10mm, the 5% deductible means you have to cover the first 500K in damage BEFORE the insurance company even comes out to look at things.

So imagine paying crazy money for a policy, then oh yeah you are on the hook for the first 500K then we will cover the rest! What are you actually covering?!?!?!

The 5% applies to the insured value of the DWELLING not the entire property.

So if it's really a 1mil home on 9mil of land the deductible is 50k not 500k.

https://www.myfloridacfo.com/divisio...canedeductible

[City Guy997S]

Originally Posted by Mathguy

The 5% applies to the insured value of the DWELLING not the entire property.

So if it's really a 1mil home on 9mil of land the deductible is 50k not 500k.

https://www.myfloridacfo.com/divisio...canedeductible

Dwelling risks with limits in excess $3 million: the insurer only needs to offer the 5% and 10% options.

Reference: s.627.701, F.S.

Seems it gets worse the more expensive the property gets. Who gets to argue the value of the property vs. the land? Why won't they let you insure the structure only then?

[City Guy997S]

Originally Posted by 1insider

If that land ever floods the value may not be as much as the owner hoped it'd be. What was once desirable can become a liability.

In that case you just valued places like the Florida keys as zero value. I'm pretty sure that whole chain has been wet at one time or another.

ME: no way would I buy anything down there or in the Bahamas. I'd rather rent a VRBO/hotel and enjoy a week or whatever and then toss the keys back to the owner and wish them the best during the next storm

[1insider]

Originally Posted by City Guy997S

In that case you just valued places like the Florida keys as zero value. I'm pretty sure that whole chain has been wet at one time or another.

ME: no way would I buy anything down there or in the Bahamas. I'd rather rent a VRBO/hotel and enjoy a week or whatever and then toss the keys back to the owner and wish them the best during the next storm

True. Maybe demand will continue to hold up even as the flooding becomes more frequent. Just sold my last Bahama property this year but it is less likely to flood than anything in coastal Florida due to rocky shore and elevation.

[City Guy997S]

Originally Posted by 1insider

True. Maybe demand will continue to hold up even as the flooding becomes more frequent. Just sold my last Bahama property this year but it is less likely to flood than anything in coastal Florida due to rocky shore and elevation.

Bahamas is another train wreck.........economy/insurance/VAT taxes .......they are literally trying to milk Americans for every nickel and they are not visiting as often!