Buying a Home in the Sunshine State of Florida

Is it smart to buy a house in Florida?

Affordable property prices: Compared to other states like California, property prices in Florida are relatively affordable, which can make it an attractive option for real estate investors. This can lead to strong returns on investment and can make it easier for investors to purchase multiple properties.

Benefits for Owning a House in Florida

• No Income Tax. Florida is one of the nine US states that do not have any income tax.
• No Estate Tax. Currently, there is no estate tax in Florida. The state abolished its estate tax in 2004
• Homestead Exemption on Property Taxes. Every person who has legal or equitable title to real property in the State of Florida and who resides thereon and in good faith makes it his or her permanent home is eligible to receive a homestead exemption of up to $50,000.
• Save Our Home Cap. What is the 'Save Our Homes' law? 'Save our Homes' is an amendment to the Florida constitution that took effect in 1995. It limits the annual increase in the assessed value of homesteaded properties to 3% or the change in the National Consumer Price Index (CPI), whichever is less
• Asset Protection. The Florida Constitution protects a debtor's primary residence from levy and execution to collect a debt.
• Perfect Weather. Florida, which averages 237 sunny days a year (hence the Sunshine State moniker), is known for its generally mild climate and an abundance of outdoor activities

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Tips For Buying A House In Florida

1. Understand Florida Property Taxes - Florida is a Homestead state. The Florida Homestead Exemption allows homeowners to claim up to a $50,000 exemption on their property taxes. This applies only to primary residences. The state’s average effective property tax rate is 0.98%. Property taxes vary by county.
2. Factor Weather Into Insurance Projection - If you’re relocating to Florida, it’s important to consider weather events like hurricanes when projecting homeowners insurance. Standard homeowners insurance doesn’t cover flooding, so you’ll need to take out separate flood insurance or risk devastating losses due to a hurricane or other natural disasters.
3. Learn The Laws For Ocean Front Property - If you’re buying oceanfront property, learn the laws about your land. Certain vegetation cannot be removed. You may not be able to use light during turtle nesting season.
4. Ask About Deed Restriction - Deed restricted communities are common in Florida. These have a homeowners association (HOA) that creates and enforces rules. The HOA’s job is to make sure the neighborhood stays in good shape so home values don’t decline. Before buying, understand any restrictions and requirements you may have to adhere to.
5. Prepare To Pay Higher Closing Costs - Closing costs in Florida are among the highest in the country. Buyers and sellers have many different fees to pay at closing. To avoid the high closing costs, a buyer could pay in cash, negotiate that the seller pays all or a portion of the costs or see if you can roll the closing costs into your mortgage.
6. Find Out Who Pays For Title Insurance - The party commonly responsible for paying title insurance depends on the county where you’re purchasing property. The seller pays for title insurance in 60% of the counties in Florida, but in counties like Miami-Dade and Broward, the buyer pays for title insurance.

All in all, Florida is a great place to buy a house due to its?favorable climate, low cost of living, and Florida's affordable real estate market. Florida property taxes are also among the lowest in America. Residents have no shortage of things to do, from theme parks to world-famous beaches.