Pretty much anywhere in the country, when one considers building versus buying, it's mostly a matter of what one gets for the money invested, and the time frame that fits the intended move. Here in the Keys, the decision is made more difficult by the added burdens on building, and the cost of "available" raw land. On the high end of the market, Land is as much a factor on a "percentage of the total cost" basis, but may not be as critical in the budgeting process.
The Keys are an "Area of Critical State Concern".

We all live under ROGO. If you come here, you'll hear the term often. Rate Of Growth Ordinance. Live it! Learn it! Love it or hate it. It means our building permits are severely limited by the State. The line for a permit is about 5 years long. As with most things in life, money will "bribe" your way toward the top. The way that works here, is one gets "points" for donating sensitive land, and thereby moves toward the top. Problem is, that's expensive. Consider that the cost to purchase enough "donatable", sensitive land for 10 "ROGO" points comes to about $120,000; and the cost of your place in Paradise just went up by $100 per square foot! Enough about that. You get the idea. That's why a 1968 mobile home on a "dry" lot (off water), is worth $150,000. It doesn't say "fixer upper" in the MLS. It says: "BUILDING LOT WITH PERMIT IN HAND!" if you read between the lines.

The good news is that the day before hurricane Wilma in 2005, that same home was worth about $235,000. A buildable lot then was worth about 200, and the cost of the ROGO points was about 130. After 2 years of a stalemate between buyers and sellers, the time has finally come when reality has set in. Sellers seem to understand that the prices of 2 years ago are old news, and the market ain't gonna git no better 'till the rest of the country comes around.

So; if you're ready to jump into Paradise, do it feet first, 'cause the tide's out right now. When it comes back in, it's coming with a vengeance. Why? Because these old communities of trailer homes are going to be replaced with new, hurricane proof homes, and the overall expectations of baby boomers like me are far above those of our parents. The average cost of our new "starter homes" here is currently on the order of $400,000. My prediction is that there are about 5 years during which these trailers will be available at "reasonable" prices. That time frame could shorten as more people discover the Keys. One thing for certain; the State isn't going to relent on permits and, even if they did, there's very little to no, available, buildable land.

Here's a choice: Buy an existing home and be done, or build. Existing homes, even those built to Monroe County's recent codes, carry insurance premiums commensurate with block and frame construction. The best of them withstand instantaneous wind gusts of about 165 MPH, and are required to meet a "large missile impact" threshold of 34 MPH. Without concrete walls, roofs, and floors, they are susceptible to termite and fire damage just like a regular frame home. Most homes sold in Monroe County are sold "AS IS, with Right to Inspect". Choose a Realtor who understands your needs, and will help you through the process of inspections, insurance,
and closing. Enjoy the decorating, and Relax, It's the Keys!

If you choose to build, there can be significant advantages to buying a new breed of construction: permanent, relocatable structures. These homes, marketed as www.windzonehomes.com are classified as "concretables". Built in a factory in Okeechobee, FL. by www.royalconcreteconcepts.com they have concrete roof, walls and floor. Kinda like a regular house only heavier. A lot heavier. and oh, by the way, they're cheaper to buy, insure, and own. Like, by a multiple of half. And they're termite, fire, hurricane, and nearly sound proof. Wind resistance is certified to 186 MPH, and the large missile impact rating? 85 Mile Per Hour. Certainly worth considering. That's why i'm writing about them. Come see the model sitting in our yard here at Prudential Keyside Properties, Key Largo. Time from permit to occupancy can be as little as 60 days. That's less time building and more time in Paradise. Relax, It's the Keys!

George Wilson
submitted 1/31/2008