Honest advice for someone seriously thinking of relocating to Tampa area (Clearwater: sales, real estate)

[3nickles]

New to this board, please bear with me and sorry if my post is a bit "long winded" but I'd rather give more information up front as opposed to too little in getting valid advice/help.

I'm currently 51 years old and I grew up and have lived in the Chicago Suburbs my entire life. I have absolutely had it with the corrupt political state of Illinois for several reasons including:

1) skyrocketing real estate taxes (corrupt taxing authority that repeatedly raises HO taxes even though I've paid lawyers and fought for 10 years with lower comps/foreclosures in my immediate neighborhood),
2) declining jobs (businesses moving out of the state because it is "tax" hostile to do business in Illinois),
3) state income sales tax just raised by Madigan (4.95 percent, up from 3.75 percent / business tax 7 percent instead of 5.25 percent)


I just cannot afford to live up here let alone think about retiring up here. I can't afford the real estate tax even if I get my house paid off (I currently pay $11,200 in R.E. taxes for 1/4 acre and can only sell house for about $290). The housing market is declining as all of the major business have moved out or in the process of leaving (including my employer of 27 years which moved out of Illinois for "butts in seats" jobs back in 2001. As businesses/people move out, the state loses taxes which in turn then raises taxes to offset the loss of said business/people, resulting in an endless cycle because the politicians just DON'T know or don't CARE to actually "CUT" taxes (more political stuff that I don't want to get into i.e. Chicago Teachers Union, pensions and the list goes on and on).

So with that in mind I'm targeting to move out of this state within the next 2 years. Obviously I'm looking for a new place as well as to eventually retire, so no state income tax, and other tax/retirement friendly incentives are what I'm looking for as well as improving my quality of life. I've always loved the ocean (scuba diver, have saltwater reef tanks since I was 16, always dreamed of owning a boat and tooling around in the ocean {too expensive to store and not enough areas to boat in the Chicago burbs}, LOVE to go on 7 day caribbean cruises) and love the beach for sunning etc.

I have looked at numerous top 10 retirement cities lists until I'm blue in the face but a few of the cities that I see routinely hitting the top 10 list are: Tampa, Cape Coral, Sarasota and Port St. Lucie to name a few. That said I find that Tampa is very intriguing due to the protected bay (for boating/fishing etc), the fact that are 3 distinct cities in the area (Tampa, St Pete, Clearwater) and 3 major sports teams (Bucs, Rays, Lightning).

With Tampa at the top of my list currently I started looking for a modest ranch house, preferably new as I've owned 3 homes in my lifetime, all bought new in the first phase of construction and I've save thousands of dollars versus buying at the tail end of the construction phases and always made a profit when selling and upgrading (last home purchase the exception, as I'd lose money right now based on comps and the facts that I pointed out above regarding leaving businesses, families, leading to abandonment-foreclosures).

While Florida is touted as being retirement friendly, I'm confused as I've recently been made aware of the dreaded "CDD's". I was looking into a William Ryan development in the Riverview area and uncovered that on top of the home price (ranch with 1957 sq ft), I'd be responsible for paying an additional $2400 per year for 30 years to pay off the CDD fee (explained that builder bought 30 year bond to cover infrastructure for property AND for amenities that I frankly don't need or want: community pool, basketball court, dog park). Adding that CDD fee to the property tax equates to about $6,000/year. So basically I'd be paying 6K/yr for a 1/8 acre lot which is half what I currently have in Chicago burbs, which essentially equates to the same "high" tax bill that I'm trying to avoid!

For comparison I thought I'd explain that home builders/developers in my area pick up MOST of the infrastructure costs (streets, sewers, water, utilities etc) and only defer a very small portion to the customer/home-buyer: in my case I paid $271,000 for my house back in 2001; impact fee of $5,000 was added to each home in the subdivision to help pay for the brand new K-8 school being built, that's it. The rest of the costs were absorbed and paid by the developer. The $271K price was only for the property and the materials to build and complete the house.

That sais, I spent 3 days googling/searching for another builder offering new construction in the area and I have yet to find one that didn't also have CDDs and some also have HOA (homeowner association fees) on top of that! That seems outrageous and non-conducive to a person relying on retirement income, even IF they house is completely paid for.

Does anyone have any advice/suggestions regarding my desires for a new relocation city or can comment (offer advice) regarding these CDDs, or am I stuck crossing off Florida for my retirement/move possibilities because I just can't accept the fact that I am tied to paying a huge CDD/HOA for 30 years, especially since I don't want/need the included amenities that seem to be included with EVERY new single family home development that I've found so far?

[bobandsherry]

I was in similar position you are. Lived in western suburbs of Chicago for all my life. Bought a house down here 2 years ago.

Indeed, Illinois doesn't have CDD's, a bit of a Florida thing. However, the fact is infrastructure costs are paid by you one way or another, either in the initial price of the house (lot price) or is separate CDD bond as is more common here. You can also look for developments that advertised "No CDD", there are some. It wasn't a community we found appealing though.

You can choose to pay off the CDD bond debt and avoid the ongoing annual bond debt payment. You would contact your CDD and request the payoff amount. You'd still be responsible for the annual operating portion of the CDD, but that's typically a relatively small amount.

[kmarc]

It doesn't sound as if the Tampa Bay area is for you, quite frankly, unless you purchase an older, existing modest ranch home in a non-CDD neighborhood or subdivision. They're out there. You just have to look.

[kmarc]

Also, please be advised that if you have visions of beaches dancing in your head, Tampa is not for you. Sarasota, Clearwater maybe. And I would suggest a trip to beaches on both coasts to really assess which is right for you.

[3nickles]

Originally Posted by kmarc

Also, please be advised that if you have visions of beaches dancing in your head, Tampa is not for you. Sarasota, Clearwater maybe. And I would suggest a trip to beaches on both coasts to really assess which is right for you.

Thanks for the comments/advice.

Bob, if you could do it all over again would you buy new in Tampa?

KMARC, thanks for the info as well. I think the CDDs are all over Florida, not just the Tampa area and yeah I do use Google Maps to view topology as well as street view to find out what it looks like. I guess I could look at other areas for beaches like Cape Coral or Sarasota but if clearwater is decent beachwise that would work for me. I'm more concerned about finding a house that I like and can afford the taxes etc. when I retire.

[kab0906]

Remember that what the state doesn't collect in state income taxes they just add on to property tax

[bobandsherry]

Originally Posted by 3nickles

Bob, if you could do it all over again would you buy new in Tampa?

I retired (early) when I moved here. If I had to commute my thoughts may be different, but no regrets. I knew what to expect and really like the community I'm in.

[kmarc]

Originally Posted by kab0906

Remember that what the state doesn't collect in state income taxes they just add on to property tax

So true. People tend to forget this. One's home can become an ATM for the state government.

I've never purchased where there is a CDD, and never will.

[Tampaite]

Originally Posted by 3nickles

New to this board, please bear with me and sorry if my post is a bit "long winded" but I'd rather give more information up front as opposed to too little in getting valid advice/help.

I'm currently 51 years old and I grew up and have lived in the Chicago Suburbs my entire life. I have absolutely had it with the corrupt political state of Illinois for several reasons including:

You haven't provided much information either rather than the long rant about property taxes.

Will you be working in the Tampa area or do you have enough assets to afford housing? Am assuming you do or that you'll be selling your home($290K) and use that towards buying a home down here?

Why are you hung up on new homes? You can buy a nice home for $200K and with 2K property taxes around Tampa area. Again, the "nice home" is my definition and it can change with yours.

Buying an existing home will solve your problem. Check redfin.com or zillow.com or MLS listings.

Good Luck!

[kmarc]

Originally Posted by Tampaite

You haven't provided much information either rather than the long rant about property taxes.

Will you be working in the Tampa area or do you have enough assets to afford housing? Am assuming you do or that you'll be selling your home($290K) and use that towards buying a home down here?

Why are you hung up on new homes? You can buy a nice home for $200K and with 2K property taxes around Tampa area. Again, the "nice home" is my definition and it can change with yours.

Buying an existing home will solve your problem. Check redfin.com or zillow.com or MLS listings.

Good Luck!

Yep, I don't get this "buy new", either, especially if one's resources are not unlimited. I like the idea of a neighborhood or subdivision that is built out, where I can see what it is like, what the residents are like, where problems and glitches have been ironed out over time. But that's just me. People want what they want, I guess.