Originally Posted by nipsip
I am asking why houses are more expensive in costal Carolina than they are in Florida. I simply used Vero Beach, which is an upscale community, as an example.
Even east of 1A you can buy a 4/3 with a pool, a 2 car garage, a lanai and a couple blocks to the ocean cheaper than you can buy the same house anywhere on the NC or SC coast.
I am trying to understand why. Is it because the only people who own those houses are NC/SC residents who drive to them quite often, or is it that FL is just too far away for people thinking of buying a vacation home.
As far as I can read, the insurance is pretty close in dollars, FL does not have a state income tax (if you make your vacation home your principal residence), sales tax is 6%, property taxes run ~$4800
on CAMA of $615K
I have never even heard of a "lanai." I don't know what it is or why you'd need one, but if it is that important to you, by all means, please move to Florida.
Hopefully you understand that there is no answer to your question! Real estate values are a result of supply and demand of buyers and houses. Surely you have heard the news: we overbuilt real estate in certain areas. Obviously that affects the supply side of the equation.
Our recent R/E bubble originated in certain areas, and due to migration patterns, quickly spread the fever elsewhere. From a temporal perspective, Florida is ahead of the national curve, North Carolina is behind it. Just yesterday I saw a report where Florida property was said to be highly undervalued.
*edit: here you go >
I never take these things too seriously, but this one seems somewhat in line with reality.
Wilmington, Myrtle Beach, Charleston, and Virginia Beach all on that list as "overvalued". Your other NC beaches are not large enough metro areas to make the list.
Vero Beach, Cape Coral, Port St. Lucie, FL are all on that list as "undervalued."