TL;DR - big potential tax savings but net change in total expense depends on where and how in Florida you choose to live.
Long version:
I moved last year from Maryland to Florida. The biggest controllable factor is cost of place you chose to live. Highly popular locations can be about as expensive as similar popularity location in MD. Ex-urban and rural areas of Florida can be much less expensive than my Florida neighborhood, especially if not in a gated community or master association neighborhood.
My home in HCOL area of Florida is about the same cost on a square foot living area basis as my HCOL area MD home. My property taxes about same for HCOL area in Florida. Utilities seem a wash; I’m spending more on electricity (for A/C) but water and sewer charges seem a little lower in my area in Florida.
I’m walking distance in Florida to everything I need day to day and week to week, so driving a good bit less, result of my choice of desirable neighborhood. Also specific to my choice of Florida house and neighborhood: my HOA fees are much higher because of more amenities (eg. pool/clubhouse) and services like comprehensive landscape maintenance and extra security.
My homeowners insurance is currently about 2.5x what I paid in Maryland but I suspect my MD policy would have seen some significant increase at renewal time because of increased construction/repair costs. I didn’t have flood coverage in MD, which I have in FL. My auto insurance is almost double for comparable coverage; MD policy would probably also have seen increase at renewal. If Citizens (state-run home insurer of last resort) ever forces me to private insurer, I’d expect at least 20-30 percent increase in premium. Not pleasant but I have room in my budget for it.
I haven’t used any significant medical services in Florida yet so can’t advise on that.
The other big factor is lack of state personal income tax. It’s a bigger factor the more income you have. The extra insurance cost and HOA fees counter my tax savings a bit but I still come out a bit ahead financially in FL; just not as much as a tax-only calculation would suggest.
And lifestyle-wise, it was a good choice for me. I don’t mind the summer heat and humidity. I’m in my “forever” home now, though still working (remotely) as long as I like the work.
Word of note: as insurance premiums continue to go up, I’d expect home prices to soften for low to mid priced homes. The wealthiest homeowners will be indifferent to insurance premiums. Coastal area apartment building condominiums are already starting to come down in price after big increases in insurance premiums and association reserve assessments (after the Surfside condo building collapse).
Long version:
I moved last year from Maryland to Florida. The biggest controllable factor is cost of place you chose to live. Highly popular locations can be about as expensive as similar popularity location in MD. Ex-urban and rural areas of Florida can be much less expensive than my Florida neighborhood, especially if not in a gated community or master association neighborhood.
My home in HCOL area of Florida is about the same cost on a square foot living area basis as my HCOL area MD home. My property taxes about same for HCOL area in Florida. Utilities seem a wash; I’m spending more on electricity (for A/C) but water and sewer charges seem a little lower in my area in Florida.
I’m walking distance in Florida to everything I need day to day and week to week, so driving a good bit less, result of my choice of desirable neighborhood. Also specific to my choice of Florida house and neighborhood: my HOA fees are much higher because of more amenities (eg. pool/clubhouse) and services like comprehensive landscape maintenance and extra security.
My homeowners insurance is currently about 2.5x what I paid in Maryland but I suspect my MD policy would have seen some significant increase at renewal time because of increased construction/repair costs. I didn’t have flood coverage in MD, which I have in FL. My auto insurance is almost double for comparable coverage; MD policy would probably also have seen increase at renewal. If Citizens (state-run home insurer of last resort) ever forces me to private insurer, I’d expect at least 20-30 percent increase in premium. Not pleasant but I have room in my budget for it.
I haven’t used any significant medical services in Florida yet so can’t advise on that.
The other big factor is lack of state personal income tax. It’s a bigger factor the more income you have. The extra insurance cost and HOA fees counter my tax savings a bit but I still come out a bit ahead financially in FL; just not as much as a tax-only calculation would suggest.
And lifestyle-wise, it was a good choice for me. I don’t mind the summer heat and humidity. I’m in my “forever” home now, though still working (remotely) as long as I like the work.
Word of note: as insurance premiums continue to go up, I’d expect home prices to soften for low to mid priced homes. The wealthiest homeowners will be indifferent to insurance premiums. Coastal area apartment building condominiums are already starting to come down in price after big increases in insurance premiums and association reserve assessments (after the Surfside condo building collapse).
Statistics: Posted by Mr. Buzzkill — Sun Jun 16, 2024 10:16 pm — Replies 14 — Views 994