Cost of Living in Venice or Sarasota (sales, insurance)

[LookingatFL]

If my husband and I bought a home in either Venice or Sarasota that was about 1600 sq ft with a pool, and we have a pension of $50,000 per year... can we afford to live here? Our medical expenses are pretty much covered by insurance. We live a pretty quiet life. We don't take big vacations. We don't have expensive hobbies.

[Cardiff by the Sea]

Could you live on your income where you are?

If you bought a home, would you have a mortgage or pay cash? That would be a big factor.

My understanding is those studies that say cost of living is cheaper in Florida are not exactly true if you live on the coast. Inland is cheaper but the coast is not as cheap.

Property tax will probably be a wash for your current state income tax, depending on where you live now and the cost of the house you buy in Florida.

Property insurance is more expensive.

Sales tax is high, especially on items in which tourists use. Gouge those tourists.

Hubby keeps telling me that it is cheaper to air condition a house in the south than it is to heat a house in the north. Maybe someone can chime in and tell me if that is true.

AAA road service website give information about gasoline prices. You could compare to where you are.

Produce expenses seem high to me, but I live in CA where it is all grown.

Whether Florida is affordable, sort of depends on how it compares to your current cost of living.

[LookingatFL]

Sorry, I'm paying cash for the house. I live in TX so there is no state income tax, but our property taxes are outrageous. Unlike FL our property taxes are capped at 10% of the previous year and the homestead exemption is less than in FL. Our sales tax is 8.25% so it isn't much different in FL. Property insurance will be higher but auto insurance will be less. Our electric costs ares higher in Texas. Gasoline is cheaper here.

[Cardiff by the Sea]

So what are you thinking might make Florida unaffordable for you?


I think the poster loves2read lives part year in Florida and part year in Texas and could probably best answer your questions about cost of living in Florida.

[LookingatFL]

The difference will be that I am giving up my work to move to FL and will only be living on the pension. At this time my income is invested and we live on the pension. I just wanted to be sure that we could live on the pension in FL too.

[Cardiff by the Sea]

I know that I am addressing an issue that is not what you asked, but this is the question that comes to mind.

Have you talked to a fee-for-service financial planner (who is not out to sell you a product like the free ones are)? You probably have, but it is worth raising the question.

It would seem to me you would want a professional to evaluate your investments. Some may have low risk but may not withstand inflation. Others have better return but are of higher risk. The right mix for your age and life expectancy is very important. I would think you would want a professional to run projections of what would happen to your pension under various financial scenarios.

Just something to think about. I am sure other posters who are long term Florida residents can address your original question.

[loves2read]

owning a home of any kind doesn't mean you are done paying when you buy it and pay the taxes...
you will have ongoing maintenance big ticket and small
and if you have a pool and a yard you will need to maintain those-doesn't have to be $$ but it will cost money
plus you will be decorating the house--

the question is can you live on a budget?
don't buy too big/expensive house to maintain and if you can budget sure you have enough
to some people 50K is plenty and for others it is just jumping off point

and you aren't counting your federal tax bill I bet either so the 50K is before tax
and then you have health care/Medicare costs
those can be significant costs in retirement

[LookingatFL]

No, the $50K is after taxes.

[macrodome2]

I answered a similar question about costs between NJ and Fl. Here is the link:

The property difference (lawn care) is NJ: 1.1 ac, Fl: .2 ac

http://www.city-data.com/forum/33601458-post19.html

[LookingatFL]

That is a terrific post. Thank you very much. I read the entire topic.