Florida is one of the most desirable places in the country to purchase real estate. Not only does the state have a lot to offer in terms of things to do and places to see, but they also offer great weather year-round. With these benefits, property ownership can be a great investment, whether for personal use, flipping, or rentals. If you are considering buying a house in Florida, here are some things you need to know.
Florida Property Taxes
While you’d probably think Florida had property taxes higher than the national average, this is not the case. In fact, the state’s property taxes come in lower. The average effective property tax rate in Florida is 0.98% compared to the national average of 1.08%. The average Florida homeowner pays roughly $1,750 in annual property taxes, though the total amount will vary between counties.
While property taxes may be slightly higher for non-owner occupied homes, there are several tax laws that owner-occupied dwellings can claim. For example, there’s the Save Our Homes assessment limitation that caps tax increases to 3% annually. Additionally, there’s a homestead exemption that essentially frees the first $25,000 of the assessed value for the home from property taxes. It also exempts an extra $25,000 from non-school property taxes. Thus, buying a house in Florida is a great investment when it comes to property taxes.
Florida’s Rental Market
For those looking to move to Florida full-time, they may find that it’s a better investment to purchase a home rather than rent one. Rent prices in the state tend to be costly; hence you’ll end up with lower monthly payments on a mortgage.
If you are looking to buy a home in Florida to rent, it’s important to pay attention to the location. Though you may not realize it, not all Florida cities are created equal. If you are looking to turn a profit with rental income, you should consider buying a house in Florida cities such as Fort Myers, Cape Coral, Sarasota, Naples, and other coastal areas. These regions get a large influx of tourists each year. Thus, you have options for types of rentals: long-term and vacation rentals.
The national average cost for homeowner’s insurance tends to be lower than the prices paid in Florida. However, keep in mind that this will vary greatly by city. For example, coastal areas feature higher rates due to the fact that you are more susceptible to being hit by a hurricane. You may find that prices are lower in cities more inland. Yet still, the crime rate, the size of your home, and other factors will also play a role.
Buying a House in Florida: Best Deal
In the end, Florida is a desirable place to live for both younger families and those who are retired. Buying a house in Florida is a great investment if you take these things into consideration, and watch for any downturns in the market. If you’re currently looking to buy a home, you can save yourself a great deal of time and money by buying a house from companies that buy houses for cash. Such companies tend to buy homes at rock-bottom deals, allowing them to pass the savings on to their buyers.