No doubt about it, our current circumstances are not much better than they were this time last year. Despite any short-term improvements, Ukraine (which was just happening this time last year) is still in a battle.
We admit, it’s hard to maintain the appropriate perspective when we are being assailed daily with rising costs everywhere. Housing, gas, groceries, interest rates....and the non stop headlines re: recession.
We feel we should make you aware we are still seeing difficulty across the boards for services and/or materials. Basically, nothing will be “inexpensive” and if it is, it won’t be readily available. There it is, in a nutshell. Acquisition time has ballooned and prices continue creeping.
This remains most prevalent with appliances but is seeping into just getting general services executed—because vendors are still feeling the impact of supply chain woes and the “great resignation”.
New Insurance Dynamics (highlights):
- New Insurance Provisions effective December 22, 2022 signed into law by Governor
- A claim must be made with in 18 months of the date of the loss
- The insurance company must indicate to policy owner within 60 days if they are paying the claim or denying the claim
- As Owner no coverage of repairs will be reimbursed unless the following happens:
a) The repairs need to be completed because it is an emergency and they have been reported to the insurance company.
b) No reimbursement for repairs earlier than 72 hours before they were reported to the insurance company.
c) The time of loss is confirmed by the insurance company.
d) Time of earlier approval confirmed by the insurance company.
So, what’s the good news? What can we be hopeful about?
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You can write off many of the expenses of maintaining and repairing the property as business expenses.
- The net cash flow earned from your rent after expenses can supplement your retirement income or other financial goals.
- The rent collected can offset the mortgage, repair costs, and expenses to run the property while you earn the property’s appreciation.
- Your equity just keeps growing...
- You don’t have to pay social security taxes on your rental income.
- Real estate isn’t as volatile as the stock market and often reacts opposite to the market, helping you diversify.
If you have questions about the details of any of these issues, email marketing
The Team at FPM Properties
