Buying A Modestly Sized House In Central Florida Might Be More Of A Challenge Than You Think
Every time the temperatures drop below freezing, the folks up north quickly tire of scraping the ice off of their cars in preparation for a slippery commute to work, and they start to daydream about retiring and moving to Florida, so that they can get away from both work and snow. If you are close enough to retirement age that your Floridian daydreams are becoming more detailed, then you might be in for an unpleasant surprise once you start crunching the numbers. Retiring in Florida is a lot more expensive than it used to be, and not just in glamorous locales like Miami and Palm Beach. Becoming a homeowner in Florida is even more of a challenge than it is in many other parts of the country. The first step toward a feasible plan for retiring in Florida is to contact a Tampa estate planning lawyer.
Florida’s Reputation As a Cheap Retirement Destination Is No Longer Applicable
Every year, Bankrate ranks the 50 states in order of their affordability as retirement destinations. For many years, Florida ranked in the top ten most affordable states, but recently it has become much more expensive. This year, Florida is the 35th most affordable state for retirees, which is just a nice way of saying that it just barely missed being one of the ten most expensive states. The purchase price of houses in Florida has gone sky high, as the Sunshine State has seen more people of all age groups moving in than any other state; therefore, the housing market is very competitive.
Meanwhile, Florida also has one of the nation’s lowest rates of mortgage closing. Only 47 percent of mortgage loan applications in Florida get all the way to the stage of closing on the loan. Taking out a mortgage loan is a multi-step process. You verify that you have enough income and cash on hand to pay the principal of the loan, and then the loan officer keeps factoring in more and more costs that you will likely have to pay, and you cannot close on your mortgage unless you can demonstrate ability to pay all of them. Homeowners’ insurance is what tanks many of Florida’s unsuccessful mortgage loan applications. Six out of the ten most destructive hurricanes ever recorded have made landfall in Florida, which means that insuring Florida houses against storm damage is extraordinarily risky. As a result, some insurers charge prohibitively expensive premiums, while others refuse to underwrite homeowners’ insurance policies in Florida at all.
How to Live Within Your Means in Florida
Of course, if you already live in Florida, it is not so expensive to stay. Likewise, you can move here and rent an apartment in a retirement community. If the retirement community offers assisted living amenities, then your long-term care insurance will make this an affordable option.
Contact David Toback About Retiring in Florida
A Central Florida estate planning lawyer can help you plan for an affordable retirement. Contact David Toback in Tampa, Florida to set up a consultation.
Sources:
nationalmortgageprofessional.com/news/florida-battles-riptide-closing-problems
cnbc.com/2023/08/31/cheapest-us-states-to-retire-in-2023.html
