Relocate to Florida in 2 to 7 years

Don't overlook the salubrious effects that this warm weather and sunshine have on the older bodies!
Very seldom do the "natives" get wintertime colds if they stay away from East Coast Aviation travel. The sun gives the old bones a good bake, costs nothing. Even if you don't time the price swings with great precision, every day you remain in Mid-West or New England is another bad day for personal health. Don't forget Ponce de Leon.
 
Walter

here in the miami area, owning a condo (and probably a home) hasnt't been a good investment in years. Back in 94, we rented a 2/2 on the bay which we ended up buying after a year. We were paying $2100 a month in rent. When we bought it, we started paying $700 a month in maintenance fees and $400 in taxes. I forgot how much interest we were paying but it was over $1000... that's $2100... add to this the interest on the $100k down payment, at even 5% that's $400 a month lost income. So owning the place cost us $2500 vs renting $2100.

same deal right now in most cases. When you add maintenance/condo fees, taxes and interest, renting the same condo can save you 30%...

if it's been like that for the past 14 years, i doubt it's going to change. The only benefit is if you happen to sell during the short bubble period.. unfortunately we sold right before the last one :(-

I know many people who bought properties as investment and whose rent dont' cover the taxes, maintenance and interest.

The only benefit to owning is, especially for younger folks, the forced savings from having a mortgage...

now is it different when it comes to homes instead of condos? maybe but take into account all the expenses (Lawn, alarm, water, repainting every few years, roof repairs every 10 years, insurance, etc...) and condo maintenance fees are not that crazy.
 
We bought our home 5 years ago. It is a "Florida sandwich": boat dock in the backyard with a pool in between. At the time that we bought, the real estate agent said that "Every house on the water has ten buyers, every house off the water has ten houses per buyer". Waterfront (property with deep water access) is a finite resource. In 5 years, I'd guest that my house has doubled in value (there are several homes for sale now that will confirm that IFF they sell). 2 years ago, it had quadrupled in value.

I think that the taxes are very high if you are not "homesteaded". Non-resident home owners and businesses pay the most taxes.

Retire early and live longer. Move to Florida for the warm weather and year-round boating. It's worth it. Watch the Florida home market, I believe it will hit bottom soon. When you buy, buy waterfront where there are "10 buyers for every home". Stay away from the "glamour" cities. Old Florida still has some bargins.

Wait! What am I saying... No, Florida is crazy expensive and crowded too. There are foreclosures everywhere. If I could get out, I would! [:-shades]
 
We are in a period of great housing market uncertainty on the west coast of FL. Asking prices vary by 50% for similar properties. The stuff that is selling is at 2003 or 2004 prices except for new construction which is off by a hard to determine, at least for me, significant percent.
The good news is that $200K inland houses are back and $500-600K waterfront houses also exist. You will have to work at it though because many properties are listed by sellers unwilling to recognize the reality of today’s prices. They waited too long to cash in and move to a cheaper place in boondocks SC. Now their house sits on the unsold list where it will stay.
If someone wanted to move to FL now is a far better time to do it than 2005 or 2006. I don’t think that applies to folks considering buying now for a future move though.
 
I agree that prices are back to 2004 levels, but sadly, insurance and taxes are hugely higher than then.

Ergo, prices have more to fall, until the entire cost of homeownership is back to 2004 levels.
 
Chris, insurance yes, but not taxes... as the values come down, so do taxes so if values are back down to 2004 levels, taxes will follow, immediately in case of a new purchase.
 
quote:
Originally posted by pdecat

... snip ...
I don’t think that applies to folks considering buying now for a future move though.

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I agree, don't buy until your ready to move here, or until the prices are lower, or until the non-resident tax issue is solved or until insurance is lower.

IMHO, prices will continue to drop for the next 18 - 24 months.

The tax issue goes away when you declare residency.

Insurance is solved by making your home "huricane ready" and proving it to the insurance cos. The proof is harder than the work on the home. In 2004 and 2005, three hurricanes hit our house. The only damage was to the screens on my pool enclosure, which I replaced myself. To be fair, some of that was luck (a blessing!), some because I was prepared.

I think Pascal hinted at fact that few care to think about. Real estate is generally not a good investment. On average, since 1963, real estate has only neted about 4% (according to Fidelity Research Institute). Just like all investments, some do better than others and you must buy the good ones to get the best return.

Good luck,
 
Mark: the missing part of your figures is leverage. If you can brake even with a 33% equity then the return is 12%. Right now that is difficult but it is the basis of most realestate wealth.
 
Right now, I plan to be down Feb 28 to look at available units in the Ft Lauderdale area. Specifically, I am looking at units second floor or higher, on the intracoastal side, ocean access within a walk, boat slip option, southern exposure and garage parking. On a search there are many units available that meet most or all of my specs.

For me, it has to be the right building and the right deal. If not, I'll take a pass because this is not an investment unit and I'm in no rush. My plan would be to use it or allow my family to do so October - April. Eventually, I would split my time between NY and there but I won't be a full time resident.

I'll post what I see when we get back.
 
Mark,
Let me know what you find. We are in a similiar position. I would need a condo that allows dogs of course!

Dave
 
What do you guess the % of the better condos- say $700,000 and up- don't permit dogs?
 
it depends... in miami, most good buildings allow dogs but with a weight limit... often 20 to 30 lbs max.
 
the best thing about investing in real estate is that it is always cheap in hindsight. unless you think that prices as going to fall another 50% from where they are now does it really matter in the big picture if you bought it at the very bottom of any hickup in prices? if your goal is a long term investment, then treat it that way, select the best location and value and put it away. one day soon enough you will look back on it as a wise move.
 
If you are looking to buy something to rent out as an investment, NW Fla. area is pretty booked up in the summer with southern vacationers and snowbirds in the winter. The water is clear blue and the sand is bright white, almost like sugar. It is a lot more laid back than south Fla. and the fishing is good too. It just gets a little bit colder in the winter, but doesn't normally freeze at all.
 
or you can buy a mcmansion on a canal and your taxes will be a mere $40k/year
 
I bought a condo in Naples 2 years ago in what they call al bundled golf community. This is where every homeowner is a member of the golf club. We rent it in the winter for now and we are able to transfer our membership to the renters so now they enjoy the amenities of the golf club and I get $4,000.00 per month in rent. That more than covers all cost and puts a few buck in my pocket. As for boating you can join a boating club for about $1,600.00 per year and they have about 25 boats at all times for you to choose from. Go out, come back gas up and leave, no maintaince, nothing to do. Not a bad way to go boating and play golf at the same time. Steve
 
Ocean Spray I agree with you! I have a simaler plan, as long as there's a "bigger boat" in the future!! (haha) I find it interesting that boaters can turn there head, and write the check for the cost of owning and fueling up their boat at 4.00 somthing a gallon,(myself included), but don't see the opportunity in purchasing water front properties at the best price they have been in years. I look forward to getting out of the rat race, but "You only loose on your real estate when you sell"!I'm going to enjoy the weather,water & beaches as long as I can!!
quote:
Originally posted by Ocean Spray

I have lived here for 13 years, and after seeing Florida turn in to a "rich only nation", the Admiral and I are selling in 5 years(after the kids graduate) and we will be downtown renters! The rents are good and much cheaper than buying and maintaining a house or condo. This way, I can walk down to the marina and go on my boat at will. Invest my money from the sale of my home and of coarse buy a bigger boat. I dont agree with the analogy of cheap homes in 5 years, I would not wait too much longer if you wanted to buy the deals are out there now. Florida has allways been and allways will be the playground for those who enjoy warm weather all year long. The housing market will recover in the next year, and I have not seen many prices dropping much lower here in Sarasota. If you want to live in the "sunshine" , you have to be willing and able to pay for it! I still think it's worth it because as far as I am concerned, Florida offers some of the best boating grounds in the country. (weather and water)

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