Cost of Living (Miami: sales, rent, car insurance)

[mellabella]

Hello, I was wondering if anyone can tell me if property taxes in Florida are really high? I am thinking about relocating from Los Angeles.
I know there isn't an income tax, but I am wondering where the states ends up making up for that.I lived in Texas before and while there was no state income tax the property tax rate was high. (luckily the houses were cheap to compensate) My 160K house ended up being the same bill in TX as my 370K house in Toronto Canada once property taxes were figured in. It all came out in the wash so to speak. My bills were the same amount at the end of the month lol.
So, I thought someone here may shed some light : ) I know they getcha somewhere when they don't have income taxes.

Thanks for any help !!

[doggiebus]

Florida gets money through things like the Property Taxes, Sales Tax and Bed Tax for example. Property Tax is roughly 2% of the sale price of the home. And sales tax depends. Florida has a 6% tax on everything except certain foods. Each county may have an addition sales tax on top of the 6%, like Miami-Dade which has a 1.5% tax, so there is a 7.5% sales tax in Miami-Dade on most things you purchase.

[Marina1686]

Property taxes are super high, insurance too!!

[harrycrat]

FL taxation system is wise...
It hits u where u cannot escape...
FL is a housing paradise,everybody wants to enjoy a mansion
So,they get u there...

[HumboldtParkShiner]

so is renting then a win-win situation? or do landlords just jack up the rent price to compensate?

[bale002]

Originally Posted by HumboldtParkShiner

so is renting then a win-win situation? or do landlords just jack up the rent price to compensate?

Strictly as a financial matter, in Florida it is best to own the least expensive dwelling as possible to be comfortable, or rent.

As a landlord, if you have bought cash in the last two years or so, currently the annual yield is 2%-3%, rents are not rising and the outlook for significant capital gains is bleak, at least in the next several years.

Landlords having bought in the last six years or so with a mortgage are probably upside down and in any case have negative cash flow.

As mentioned, property tax in Florida is roughly 2% of purchase price as a rule of thumb, comparable to property taxes in many counties in the northeast which, in many cases, are located in states with hefty state income taxes on top of that (e.g. New Jersey); property taxes in many northeastern cities are relatively quite low, but buy prices are super high.

Property taxes in Texas are roughly 3%, so one-third more, but buy prices are roughly one-third less, so it comes to about the same as Florida.

For people with nationally and/or globally competitive incomes and/or wealth, I do not consider Florida buy prices and property taxes super high, actually they are relatively cheap compared to the US northeast at least when factoring income tax into the equation.

Of course for average wage earners, competing with the global pool, almost everything is expensive.

Insurance rates, on the other hand, are super high, but that is the price to pay for a comfortable industrial lifestyle in an otherwise hostile tropical environment.

Having said that, it is cheaper to cool than to heat, and if you have a modest-sized dwelling and are comfortable at 78-80 degrees, you can contain electric bills.

If you know how to shop and take advantage of Florida's prowess in agriculture, you can contain costs for fresh produce at least, while most other industrial foods will be about the same price as anywhere else.

Car insurance in southern Florida is among the most expensive in the US, especially Miami-Dade, due to a combination of population density and high-risk drivers (very old, very young, and those oblivious to traffic laws).

[hurricaneMan1992]

Property taxes are relatively steady, but homeowner's insurance keeps going up by double digits each year. In the near future, Insurance will be more of an issue for housing in South Florida than property tax. All in all, though, the total cost of living is probably still lower than the east coast cities, if you do an apples-to-apples" comparison.