Column: Chris Famous On Housing & More
[Opinion column written by MP Chris Famous]
“My landlord has given me notice..”
“I can’t find any affordable units…”
Two sentences that are heard fairly often. Definitely too often for some. The reasons may include the following:
- Lack of rental payments
- Sale of property
- Foreclosure of property
- Unresolvable issues
- Need for relatives to move in
- Need for renovations
It is unfair to paint a picture that all landlords are just randomly giving notice or not renewing leases.
We are in a time that many landlords find themselves facing fluctuating mortgage rates and or ever increasing maintenance costs. Even if the property is paid for there are constant items in a house that need attention whether it be plumbing, electrical or structural. The property owners have to find the funds to pay the bank and or service providers.
Realistic costs
“In a recent Pew Research Center survey, 69% of Americans said they were “very concerned” about the cost of housing, up from 61% in April 2023.”
Pewresearch.org
As seen above, the cost of housing is going up in all developed countries.
The unfortunate reality is that despite the Bermuda Government dropping custom duties for construction material from 25% down to 10%, the cost of homeownership still rises. Here are some of the following reasons:
- Mortgage rates fluctuating
- Homeowner insurance rising
- The cost of all skilled labour has risen. eg plumbers are near $100 per hour
- Overseas cost of materials has risen before it even reaches Bermuda
As prime examples:
- the cost of construction in now at $800-$1000 per square foot
- Appliance repairs start at $100 per hour
- Water heater replacement are roughly $1000
- Land tax bills
Property Owner vs Tenant
For those wishing to become property owners vs. renters, the fact is much sacrifice and savings will be needed.
Live with relatives as long as possible to save on paying high rent and pool your resources with those you trust. Ideally, you would need to try and get a mortgage before the age of 40 as banks generally are giving 25 year loan repayments. Put as much as you can aside toward a downpayment and in doing so you are able to show the banks that your saving habits match their criteria.
This will mean sacrificing some of the following:
- Frequent trips
- New cars
- Online shopping
- Buying lunch daily
- Eating out weekly
Don’t take my word for it. Each of us can go through our monthly bank statements and see where we could have cut out some spending. Equally as important, for property owners who are able, it is best to learn some basic maintenance skills such as landscaping minor plumbing, carpentry and painting.
In closing, it is painful to hear the challenges of finding a place to rent. The government, via the Bermuda Housing Corporation [BHC] and the Bermuda Land Management Corporation [BLMC] is doing its part in renovating units and breaking ground on new projects for affordable rentals. The reality is that home ownership requires a lifestyle and lifetime of fiscal and mental discipline.
- Chris Famous, MP for Constituency #11, Devonshire East
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The fact that Famous decided to use an obviously AI-generated image with “$1,0000+” is equal parts laughable and sad for an elected official tasked with deciding how Bermuda is governed.
Makes you wonder what other details are being missed by these MPs in stuff that actually matters if they can’t even get these dopey, no-value, no-insight op-eds right. Jeeshums!
“The government, via the Bermuda Housing Corporation [BHC] and the Bermuda Land Management Corporation [BLMC] is doing its part in renovating units and breaking ground on new projects for affordable rentals”
Apparently MP Famous believes that the Grand Atlantic/Bermudiana Beach/White Elephant provides affordable housing after $100 million plus property development. That is more than $1 million per unit in development costs.