Pushing Poor People Away

May 7th, 2013 by admin No comments »

Why do many poor people live just outside of our towns and cities? Because we won’t let them live any closer. You see, low income residents are more likely to live in ugly homes and apartments. Other residents seek to ban such ugliness, and so attack the poor whether we – or they – realize that is what is happening. Some people may realize it on some level, and know that their laws and regulations are meant to push the poor out of town.

First Step: Get Rid Of Mobile Homes

This is a legal process which happens in almost every community at some point. As a town grows, residents become more worried about property values, and so less tolerant of “ugly” housing. Eventually, almost every town wants to ban mobile homes in particular.

The reason mobile homes exist is because they provide cheap housing, whether they are bought or rented. However, to many who do not live in them, they are considered ugly, so they must be kept out of town. First step: ban mobiles (and sometimes modulars) within the city limits.

The result? Mobile home parks and neighborhoods in the townships outside of the city limits. But in time, these townships too want to get rid of the mobiles, so they stop allowing new parks to be built. Next they pass laws and regulations stipulating that only new mobiles or those under five years old can be moved into the township. They eventually may just outlaw any additional mobile homes. At least they generally leave the existing ones alone, but if yours burns down, it has to be replaced with a frame house.

These rules and laws are presented as being good for residents. They help get rid of “substandard housing.” This IS good for those with nicer homes, but those with lower incomes are pushed further and further away from the city and jobs there. Longer commutes mean more expense, and a lowered standard of living, of course. Actually, when one watches the process, it almost seems that the unspoken goal is to get rid of poor people. In any case getting rid of their “ugly” homes accomplishes this.

When hurricane Andrew devastated Homestead Township in 1992, I said people would soon try to ban mobiles there, in the name of public safety, with hurricanes as an excuse. Sure enough, lawmakers were soon suggesting this. I didn’t follow what happened, but I doubt they were as concerned about people’s safety as they were about the value of that land if they could get rid of the poor people and their ugly homes.

Consider that the safest homes might have three-foot-thick cement walls, but nobody was calling for that standard as a matter of law. Residents of all home types get a lot of warning in any case, and so can avoid being there when hurricanes come. People lived in mobile homes there because they are cheaper, so once again, if they’re banned, the lower income folk have to move away, further from jobs.

Second Step: Rental Regulations

Having rental housing standards is another idea which claims to be about helping poor people. Nobody wants unsafe living conditions, after all. But when you look closely at how the process works, you see something else. The Northern Michigan town where I lived years ago instituted a rental code. I went and picked up a copy of it. » Read more: Pushing Poor People Away

Panama Real Estate Laws

May 7th, 2013 by admin No comments »

Buying Properties in Panamá

The following is general information on purchasing real estate in Panama. The different categories of land make it imperative to engage professionals for more detailed information. Real estate laws on the mainland can be quite different than those on islands, coastal areas, and areas near national borders.

Before handing over any money, make sure you consult with a professional and do a proper due diligence investigation over the property. It is important to understand the rules and process your property transaction correctly.

The first step is to find a Panama property you like, and negotiate the price and terms of the sale with the seller (or Panama real estate broker). Second, you should seek a qualified attorney in Panama to handle the due diligence and title search on the property, putting your Panamanian attorney in contact with the seller or real estate broker to gather copies of the property title documents and survey (if available). Third, have your attorney prepare a Promise to Buy/Sell Contract to lock in the property sale and secure the terms agreed upon (a deposit of 10% is usually required by the seller upon signing the promise to buy/sell contract), plus this gives you time to do the due diligence and get your funds into the escrow account. Fourth, once the attorney has confirmed the property title is clean, then the final closing is scheduled, where the buyer/seller sign the final Buy/Sell Contract. Fifth, payment is made to the seller, broker, and attorney from escrow (in some cases, buyers/sellers agree that payment is made after the public deed of the property is transferred and registered into the buyers name). Sixth, the Buy/Sell Contract is registered at the Public Registry where they transfer the property title ownership from the previous owner to the new owner.

Advantages by putting the property in the name of a corporation:

1- The corporate veil protects the property from any attacks from creditors or frivolous lawsuits against your personal name.

2- When you go to sell the property, you can simply sell the corporations shares, saving you a 2% property title transfer tax, and possible Capital Gains Taxes,

3- When you go to sell the property, the buyer benefits because the buy/sell contract does not have to be publicly registered, saving the buyer closing costs

4- When you go to sell the property, the buyer benefits from lower property taxes (or possibly no property tax if the registered value is below $30,000), because the registered value does not reflect the actual purchase price.

The “Preferential Interest Law”

There is a law called the “preferential interest law”, which offers special low interest rates, under the following conditions:

1- The buyer must be a first time buyer,

2- The property being purchased must be newly constructed,

3- The unit must be for residential purposes,

4- The amount being financed must be in the range of US$25,000 to US$62,500, after the down payment,

5- The financing cannot be more than 95% of the appraised value,

6- The property must be titled, » Read more: Panama Real Estate Laws