Many people today are escaping New York to come and live in Florida. With the population increasing, real estate agents in Florida are so busy selling houses to the influx of clients. People leave New York for Florida for multiple reasons, such as the blustering weather, traffic, and burdening taxes. In 2017, over 63000 immigrated from the Big Apple to Florida.
The tropical weather, the pristine beaches, and the low taxes are only a few of the many factors why Florida’s population keeps growing. Every year, Florida welcomes more than half a million new residents. As the state maintains a luxurious lifestyle, housing prices increase.
Due to the pandemic and the unstable stock market, many people hesitate to invest in real estate in Florida.
Here are five reasons why you should invest in property in Florida :
Now that the economy is strained because of COVID-19, the Federal Reserve reduced the interest rates and allowed banks to lend more. Homebuyers can now benefit from favorable home loans. The low rates will probably continue until the economy recovers from the pandemic effects. However, it is unknown when exactly the rates will rise again, which is why now is the best time to invest in property in Florida.
Many states in the US mandate an income tax of 4-8%, while Florida residents pay absolutely nothing on their incomes. For instance, if an individual makes $100,000 a year, they can save more than $6,000 in taxes. Thus, the state summons many professional athletes and celebrities. Many businesses choose Florida for their headquarters.
In many states, families of deceased people need to keep paying taxes on their assets, such as properties. It is known as “ the death tax.” In New York, the estate tax for properties worth $5 million is 3.6% and 16 % for those worth more than $10 million.
On the other hand, Connecticut has a death tax that ranges between 7.2% and 12.2 on properties worth more than $2 million. Death Taxes can be a financial and emotional burden on families. Luckily, Florida doesn’t levy a death tax.
Property taxes differ from one place to another. In Florida, the average rate is 0.98%, which is lower than the national average. Although the amount paid for property taxes varies from one county to another in Florida, the average homeowner pays $1,752 per year.
Commissioners have recently discussed reducing tax rates since the increasing home values generate revenue that goes to the county coffers. Representatives agreed to keep the fee flat. This means the rate won’t change for first-time homeowners, but second-time homeowners will be affected by a slight increase.
However, the Sunshine State, especially Palm Beach County, offers many immunities and benefits for homeowners.
Homestead exemptions started in the 19th century. It aimed to protect home values when property taxes rise, stop creditors from claiming the ownership of a home, and give widowers and widows the ability to keep living in the same residence they lived in before their spouse passed away. In Florida, all homeowners can benefit from homestead exemptions regardless of the home value. Today, property owners benefit from an automatic $25,000 exemption for the first $50,000 and an additional $25,000 exemption if the assessed value is between $50,000 and $75,000. Owners can still receive the benefit if they rent their homes for a month. However, rentals that last more than a month do not qualify for the homestead exemption.
- Save Our Homes Cap:
Florida legislature amended the state constitution to stop properties from increasing more than 3% annually to fight the increase of home value. The Save Our Homes Cap ensures that people keep affording their homes and never be “taxed” out of their neighborhood. When the owner sells his home, the property gets reassessed, and the cycle of the 3% cap starts again. Homes without the homestead exemption receive an automatic SOH Cap of 10%. Which means the home value won’t increase by more than 10% on an annual basis. Even though the percentage may seem high, in reality, many cities in Palm Beach had taxable valuations that exceeded the 10% cap.
- Special Exemptions
Homestead is one of many property exemptions available in Palm Beach County. Many families, individuals, veterans, law enforcement, active military, and first responders benefit from special exemptions. Additionally, Senior citizens with an income of less than $30,000 can apply for additional exemptions that range from $5,000 to $50,000. Residents with disabilities receive credits starting from $500. Many tax discounts are available for active military and veterans. Families receive a separate exemption if they build an additional flat for their senior relatives.
- Early Taxes Specials:
The Palm Beach Country Tax Collection Office encourages residents to pay their taxes early by setting incentives. Just like Happy Hour in pubs and breweries, if homeowners pay their taxes early, they can benefit from discounts. If they pay by November 1st, they get a 4% percent, by December 1st a 3% discount; by January 1st a 2% discount; and by February 1st a 1% discount. However, in order to benefit from the discount, taxpayers must submit the bill in one payment.
Apart from its significant tax policies and low-interest rates, Florida has many alluring attributes that make it a great place to invest in real estate.
If you reside in Florida, you have access to several pristine beaches with white sands and clear blue water. In addition to many world-famous golf courses and tennis courses, world fishing spots, and great recreational fields.
The state is fully committed to providing its residnets with the best sports complexes and fields. Golf, baseball, basketball, tennis, and football are some of the most popular sports in Florida. Additionally, the region features many biking trails and highly rated golf and cultural venues.
Luxurious residential real estate, friendly tax rates, opulent recreation are only some of the reasons why Florida is still one of the best places to invest in real estate regardless of the current circumstances.