Find out about the latest news in Madisonville, Louisiana as well as St. Tammany Parish. We will keep you “tuned in” to all of the information about Southeast Louisiana as well as the real estate industry in general. Many new home buyers are concerned about the market, mortgage information, and builder trends. We plan on keeping you as up to date as possible on these and many more topics. There is a lot going on in the Greater New Orleans area, so you will have plenty to read!

Covington Expands Public Parking to Support Growing St. John District

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Covington’s historic St. John District is known for its lively mix of restaurants, shops, and offices, but the area’s growing popularity has led to a pressing issue: a shortage of public parking. To address this, the Covington City Council took decisive action on July 16 by approving a $1.5 million purchase of property at 627 East Boston Street, which will be transformed into a much-needed parking lot. The site, once home to a gas station and more recently a vehicle detailing shop, includes three contiguous lots at the corner of Boston and Florida streets.

This strategic land acquisition was met with widespread approval from local business owners, Mayor Mark Johnson, and the city council. The addition of new parking spaces is seen as a crucial step in accommodating the increasing number of visitors to the district.

In addition to the property purchase, the council also approved a resolution to increase the city’s lease agreements for several existing parking lots owned by private individuals.

Details of the Lease Increases

The lease adjustments involve three different properties:

  • East Gibson Street Lot: Owned by Marsolan Feed and Seed Store Inc., the annual lease increased from $250 to $1,610.
  • East Rutland and North Florida Streets Lots: Both owned by Gregory M. Verges, the combined lease for these two lots rose from $1,800 to $2,400 annually.
  • Vermont and East Gibson Streets Lot: Owned by Vermont/Mandeville LLC, this lot saw the most significant increase, with its annual lease jumping from $2,400 to $24,000.

District E Interim Council member Sam Giberga expressed concern over the substantial hike for the Vermont/Mandeville lot. Mayor Johnson explained that the increased lease rates were negotiated to cover the property taxes each owner pays, highlighting the generosity of the owners in providing these parking spaces to the city.

Negotiating the Vermont/Mandeville Lease

Johnson noted that the original lease proposal for the Vermont/Mandeville lot was $60,000 annually. However, through negotiations, the amount was reduced first to $30,000 and then to $24,000. The lot, which accommodates about 50 public parking spaces, is crucial for local businesses, and Johnson emphasized that some businesses have already agreed to contribute toward the lease cost.

Two businesses have committed to covering approximately 50% of the Vermont/Mandeville lease, and the city is reaching out to others to enter sublease agreements to further offset the cost. Giberga expressed optimism that businesses would step up to cover at least 80% of the lease, given the critical need for parking in the area.

The Future of St. John District Parking

District A Council member Peter Lewis inquired about the contingency plan if additional subleases from nearby businesses could not be secured. Johnson responded that if necessary, the city could close the lot, though he and other officials are confident that won’t be needed, given the thriving nature of the St. John District.

As Covington continues to grow, the city’s proactive steps to expand public parking demonstrate a commitment to supporting local commerce and ensuring the St. John District remains a vibrant destination for both residents and visitors.

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Covington City Council Takes Steps to Address Downtown Parking Shortage

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The chronic shortage of parking spaces in downtown Covington has long frustrated business owners and their customers. At its June meeting, the City Council moved to address this issue by authorizing Mayor Mark Johnson to negotiate a purchase agreement for property intended for a new public parking lot in the heart of downtown.

The targeted property, located at the corner of Boston and Florida streets, comprises three contiguous lots. It currently houses a structure that was once a gas station and most recently a vehicle detailing shop.

The council unanimously voted 5-0 in favor of a resolution allowing Mayor Johnson to pursue the property purchase, with two members absent. The decision was met with applause from the approximately 20 attendees at the meeting, including several supportive business owners.

Caroline d’Hemecourt, owner of the Olive Patch children’s clothing store on Columbia Street, emphasized the critical need for parking for both her employees and customers in downtown Covington.

Other business owners echoed her sentiment, noting that the lack of parking deters shoppers and negatively impacts sales. No opposition to the city’s effort to acquire the property was voiced.

Council President Mark Verret, who sponsored the resolution, highlighted the property’s ideal location for a public parking lot, noting that the entire area is already paved with concrete. He described the owner’s willingness to sell as a “once in a lifetime opportunity.”

While no purchase price was discussed during the meeting, the resolution specifies that any agreement must include provisions for property appraisal, appropriate funding, and the passage of an ordinance authorizing the sale.

Mayor Johnson indicated that details of the potential purchase would be shared once negotiations are finalized.

In other business, the council reappointed Teddy Boone to another five-year term on the city’s Planning and Zoning Commission and appointed Clarence Romage to the Covington Board of Adjustments for a five-year term.

Additionally, the council approved a resolution designating The St. Tammany Farmer as the city’s official journal for a one-year term starting July 1.

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Turning Your First-Time Homebuyer Dream into Reality

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Buying your first home is an exciting milestone that can significantly enhance your life. As a first-time homebuyer, you can make this dream come true, but today’s housing market presents some challenges, particularly the limited supply of homes for sale and ongoing affordability issues. If you’re ready to take this important step, here are three tips to help you navigate the process and achieve your goal.

Leverage First-Time Homebuyer Programs to Save Money

The initial costs of homeownership, such as down payments and closing costs, can be daunting. Fortunately, numerous assistance programs for first-time homebuyers can help you secure a loan with little or no upfront money. According to Bankrate:

“. . . you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans.”

To explore these options, reach out to your state’s housing authority or visit websites like Down Payment Resource.

Expand Your Search to Include Condos and Townhomes

With the current shortage of homes for sale, prices are rising, making affordability a challenge. One way to find a home within your budget is to consider condos and townhomes. Realtor.com suggests:

“For many newbies, it might just be a matter of making a shift toward something they can better afford—like a condo or townhome. These lower-cost homes have historically been a stepping stone for buyers looking for a less expensive alternative to a single-family home.”

Condos and townhomes are often more affordable because they are smaller, but they still allow you to achieve homeownership and build equity. This equity can be a valuable asset, helping you move into a larger home in the future if needed. Hannah Jones, Senior Economic Analyst at Realtor.com, explains:

“Condos can help prospective homebuyers who perhaps have a smaller budget, but who are really determined to get a foothold in the market and start to accumulate some equity. It can be a really great entry point.”

Consider Multi-Generational Living to Pool Resources

Another strategy for entering the housing market is to buy a home with friends or family members. Sharing the costs of the mortgage and other expenses can make homeownership more affordable. Money.com highlights the benefits:

“Buying a home with another person has some obvious advantages in the mortgage department. With two incomes in the mix, buyers can likely qualify for a larger mortgage — a big help in today’s high-cost market.”

Bottom Line

By taking advantage of first-time homebuyer assistance programs, considering condos and townhomes, and exploring multi-generational living, you can overcome the challenges of today’s housing market and purchase your first home. When you’re ready to start the journey, connect with a local real estate agent for expert guidance.

Click Here For the Source of the Information.

Unlocking the Power of Homeownership

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There was considerable talk about a potential recession that could crash the housing market. Some media outlets even predicted home prices would drop by as much as 10-20%, which might have made you hesitant about buying a home.

However, what actually happened was that home prices increased more than usual. Brian D. Luke, Head of Commodities at S&P Dow Jones Indices, explains:

“Looking back at the year, 2023 appears to have exceeded average annual home price gains over the past 35 years.”

To put last year’s growth into context, data from Freddie Mac shows how home prices have changed each year since 1980. The dotted line on the graph represents the long-term average for appreciation:

The key takeaway is that home prices almost always rise. As Forbes notes:

“. . . the U.S. real estate market has a long and reliable history of increasing in value over time.”

Since 1980, the only time home prices declined was during the housing market crash, indicated in red on the graph. Fortunately, the current market is not like it was in 2008. For one, there are not enough homes available to meet buyer demand. Additionally, homeowners now have significant equity, putting them in a much stronger position than they were back then. This means there won’t be a surge of foreclosures that drives prices down.

The fact that home values increased every year except for those four years in red is why owning a home can be one of the smartest decisions you can make. As a homeowner, you possess an asset that typically gains value over time. As your home’s value appreciates, your net worth grows.

If you’re financially stable and ready for the costs and responsibilities of homeownership, buying a home might be a wise decision for you.

The bottom line is that home prices tend to increase over time, making buying a home a smart move if you’re prepared. Connect with a local real estate agent to discuss your goals and explore available options in your area.

Click Here For the Source of the Information.

Understanding Home Market Value vs. Rebuild Value in Homeowner Insurance

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When discussing homeowner insurance, you might encounter unfamiliar terms such as home market value and rebuild value. Understanding the difference between these terms is crucial for adequately protecting your property.

Market Value vs. Rebuild Value: What Do They Mean?

The market value of your house is the price it would fetch in today’s real estate market. This is the amount you would pay to purchase the home or what you would ask for if you were selling it. Conversely, the rebuild value is the cost to reconstruct your home from scratch if it were destroyed.

The rebuild value can often be higher than the market value. This discrepancy arises because rebuilding a home involves additional costs such as demolition of the existing structure, individual labor, and supplies which are not purchased in bulk like they are during the construction of a whole neighborhood. Furthermore, inflation can increase the cost of materials needed for repairs.

Why Rebuild Value is Important for Insurance

While both market value and rebuild value may come up during the homeowner insurance policy process, the coverage amount on your insurance policy is generally based on the rebuild value. This approach ensures that you can fully restore your home in the event of a total loss covered by your policy.

It’s important to note that land value is not included in the rebuild cost because the land itself isn’t rebuilt or insured. However, market value does reflect land value, as it considers the location, size, and specifics of the land.

Calculating the Cost to Rebuild

Insurance companies use sophisticated tools to calculate the rebuild value, factoring in location, construction quality, square footage, and the cost of supplies and labor. Rebuilding also takes time, and costs can vary significantly based on location and the nature of the rebuild. For instance, after the 2017 wildfires in Northern California, rebuilds took between 12 and 24 months, with costs ranging from $160 to $800 per square foot depending on the home’s standards and location.

Ensuring Adequate Coverage

It is essential to keep your insurance company informed about any updates or additions to your home, especially those that increase square footage or add significant value. This ensures that your insurance policy reflects the updated rebuild value, protecting you from being underinsured.

At Armed Forces Insurance (AFI), our experienced agents can help you determine if your homeowner coverage amount is adequate to protect your family and future. We are dedicated to serving you throughout your time in your home and beyond.

About Armed Forces Insurance

Armed Forces Insurance has been a trusted advisor to American armed forces service members and veterans for over 135 years. Based near Fort Leavenworth in Kansas, we pride ourselves on providing personalized service and straightforward advice. If you’re looking for someone you can trust to protect your home and property, visit our homeowner insurance page to learn more.

 

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Real Estate Tops List of Long-Term Investment Choices for Americans

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Real estate continues to be Americans’ preferred long-term investment, according to Gallup’s annual economy and personal finance survey.

In the survey conducted in April, 36% of respondents chose real estate as their top investment choice, a figure consistent with last year. Stocks or mutual funds were the second most popular choice at 22%, followed by gold at 18%, and savings accounts or certificates of deposit at 13%.

Bonds and cryptocurrency lagged far behind, with only 4% and 3% of respondents, respectively, naming them as the best long-term investments.

Gallup attributed the high ranking of real estate and stocks to their recent strong performance. Although U.S. real estate values have dipped from their peak in the fourth quarter of 2022, they remain significantly above early 2021 levels. Stock values have also hit new highs this year.

Since 2014, real estate has consistently been the top choice, with 30% to 45% of respondents selecting it each year. In 2013, real estate tied with gold and stocks for first place; in the previous two years, it trailed gold.

Americans’ preference for real estate aligns with their expectations of rising local home values, according to the report.

Income and Political Differences

The survey revealed that Americans at all income levels view real estate as the best investment, but their preferences for other investments vary by income and political affiliation.

Among upper-income Americans (incomes of at least $100,000), 31% named stocks as the best investment, compared to 14% of lower-income Americans (incomes of less than $40,000). Lower-income respondents favored gold (23%) and savings accounts (20%) more than their upper-income counterparts, of whom only 7% considered savings accounts the best investment.

Political affiliation also influenced investment preferences, particularly regarding gold. Twenty-seven percent of Republicans chose gold as the best investment, compared to 7% of Democrats and 18% of independents. Last year, 38% of Republicans named gold as their top choice, versus 12% of Democrats and 27% of independents.

Since 2013, Republicans have consistently been more likely than Democrats to view gold as the best investment. This gap has widened significantly since 2020. Over the past five years, Republicans have also increasingly diverged from independents in their views on gold.

Most subgroups are now more likely than a year ago to favor stocks as the best investment and less likely to favor gold. The notable exception is respondents aged 55 and older, whose opinions have remained unchanged.

Stock Ownership Remains High

The survey found that 62% of U.S. adults have money invested in the stock market, through individual stocks, stock mutual funds, or retirement savings accounts. This percentage is essentially unchanged from last year and marks a return to pre-2008 recession levels when 60% or more Americans owned stock.

Stock values reaching record levels earlier this year likely contribute to the increased preference for stocks as a top investment choice. Stock ownership is highly correlated with income: 87% of upper-income Americans own stock, compared to 25% of lower-income Americans and 65% of middle-income Americans (incomes between $40,000 and $100,000).

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