Just the PeaksThis newsletter at a glance
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A newly proposed bill out of Florida says no more property taxes!
Is it true? Everest has the full scoop and more on The Sunshine State.
No state income tax. No social security tax. No snow.
What’s not to love about sunny Florida?
This coastal paradise has always been a prime destination for vacationers, retirees, and part-time snowbirds from New York, New Jersey, and other Northeastern locales. In addition to the fantastic weather, people move to The Sunshine State for its unique amenities, strong housing market, rich career opportunities, and countless tax advantages.
Speaking of tax advantages—have you seen the recent headline?
“Florida bill would create study exploring elimination of property taxes”
This story caught Everest’s attention, as the possibility of no property taxes seemed too good to be true. What exactly are Florida lawmakers seeking to do with this legislation? And what does it mean for future buyers making a purchase down South?
Here’s the full scoop.
Originally filed on January 5th, House Bill 1371 states that it will exempt $100,000 of the value of real property from taxes. Owners over the age of 65 would qualify for exemption up to $250,000.
Then, a month later, the bill was revised to include a study exploring the impact of eliminating all property taxes and replacing the lost funds with a consumption tax. Spearheaders of the bill must report their findings to the Senate and House by February 1, 2025. Once legislators pass the act, the property tax relief will presumably become law.
Now, we know these things take time. Still, the fact that Florida is taking steps toward potentially phasing out property taxes and considering other ways to recoup those funds is an all-around excellent prospect for residents of the state.
This bright idea had us thinking—
What more might we consider about America’s Southernmost state?
There’s a long list of benefits to discuss for folks looking to invest in Florida real estate, relocate their families, or potentially retire in The Sunshine State some time in the future.
Let our resident Loan Officer and Florida enthusiast, Rebecca Jacob, fill you in.
5 Reasons to Consider Florida Real Estate
(plus one minor drawback to take into account)
Sunny skies and great weather
No more winter blues! From coast-to-coast, Florida boasts average daily highs of 77°F in winter to low 90s in the summer. People flock to the state to escape the notoriously harsher seasons we experience in the North and in other parts of the country.
“The most obvious draw is that Florida has sunny weather for an average of 230 days per year and actually holds the world record for most consecutive sunny days in recorded history,” says Mrs. Jacob. “Possibly because of this, Floridians are famously happier, more laid-back, and slower-paced than their New Yorker counterparts.”
Comfortable cost of living
With the average resident spending $54,689 per year in 2024, Florida technically ranks 32nd in the nation for cost of living. The number isn’t very compelling—but consider the fact that New York, New Jersey, Connecticut, Massachusetts, and Maryland rank even lower! Those of us moving from the Northeast Megalopolis are bound to see savings.
“In terms of cost of living, the biggie is no state income tax! Florida is one of the 9 states left with no state income tax. They don’t tax social security income either, making it a great place to retire,” explains Mrs. Jacob. “Workers also enjoy a hot job market with opportunities in hospitality, tech, healthcare, and finance. In fact, 20 Fortune 500 companies are headquartered in Florida.”
Homestead exemptions
Yes, Florida is also a Homestead state. This means the government offers an exemption minimizing property taxes for homeowners, as well as protecting their property from creditors upon the death of a spouse or declaration of bankruptcy.
“The Florida Homestead Exemption allows homeowners to claim up to a $50,000 exemption on their property taxes,” says Mrs. Jacob. “The first $25,000 applies to all taxing authorities, while the second $25,000 excludes school board taxes for properties with assessed values over $50,000. Oh, and it’s important to note—this only applies to primary residences.”
If the aforementioned bill makes it to law, Florida residents could see even greater savings in years to come.
Strong Local Markets
As of 2024, the average home price in Florida sits at $404,100, up 4.6% year-over-year. Like most parts of the country, inventory is tight, but the number of homes for sale grew by almost 20% since 2023. There are currently 171,000 available properties representing a 6 month supply (better than the national housing market average).
“The Florida housing market has always been strong, even in economic downturns,” says Mrs. Jacob. “Their local markets tend to perform better than other areas of the country.”
Unique amenities
From pristine beaches to amusement parks, quiet parks to busy cities, Florida has something to offer for people of all ages, interests, and financial situations. The amenities abound, making this state a fantastic choice for people looking to move permanently or invest in a rental property.
“You may miss out on some tax perks if you purchase a secondary residence,” notes Mrs. Jacob. “But keep in mind—when it comes to generating rental revenue, Florida is practically foolproof. In most locations across the state, the short-term and long-term rental markets do very well.”
Are there any downsides?
If you’re relocating to Florida from another state like New York or New Jersey, Mrs. Jacob warns of one small issue.
“Buyers purchasing for the first time might be caught off guard by the hefty home insurance costs! Because of the high likelihood of hurricanes and other natural disasters, properties in South Florida often need wind, hail, and flood insurance coverage, making their premiums particularly high. So, you’ll have to say goodbye to some of those homestead savings.”
Everest says: Close with confidence,
all across the country
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