Looking to buy a second home in South Florida? Then you’re in the right place! Inside this guide, you will uncover five things to consider.
The market is hot! An influx of retirees and second home buyers has helped drive the market in the Treasure Coast in recent years. A surge in second home sales has crowded the market in some areas, resulting in higher prices and lower inventory. According to The Real Deal, “South Florida’s luxury real estate market has been bustling for the past few years as buyers look to escape the snowy winters up north.” In fact, Palm Beach County saw the second highest average sales price among major cities in Florida in 2021.
With all this growth comes some unique market challenges, so if you’re considering buying a second home in Palm Beach County or Martin County, here are a few things to consider before you jump in:
Why Buy a Second Home?
Fall is the season when many potential snowbirds consider buying a vacation home. But it is not just pensioners who are flocking to buy property in South Florida. Thanks to the pandemic-led acceptance of working from home, professionals and younger families now have more flexibility.
Buying a vacation home can be a great way to diversify your investment portfolio. However, it’s important to remember that you’re buying a property to vacation in—not only as an investment.
Before you decide to buy, think about how often you expect to visit the property and whether or not you want to rent out the home when you are not using it. This will help you determine your budget. Remember to make provision for maintenance expenses and taxes.
Top Locations for Your Second Home in South Florida
You may have seen bumper stickers proclaiming that. “Life’s a beach in the Sunshine State!” Who can argue that when considering that Florida boasts year-round warm weather and 1,350 miles of scenic coastline?
On the flip side, all this splendor can make it more difficult to choose the ideal place to settle. To narrow it down, start by deciding how you want to spend your free time? For instance, do you want to be near the beach or a golf resort?
Will your South Florida lifestyle include remote work? Then services, resources, and fast and reliable internet would be a criterion to investigate.
If you are planning to make your vacation home a hub for friends and family to gravitate to, look for areas that offer the most convenience to them.
Deciding whether you plan to move in for a few months at a time or would prefer regular hops to your home-from-home will determine the proximity to airports and other transport hubs.
Financing Your Second Home
There are a variety of ways you can secure the purchase of your second home, including paying cash, obtaining a mortgage, and using a line of credit based on securities (SBL).
Because current interest rates are low, obtaining credit is relatively inexpensive. It makes sense, therefore, to hang onto your money.
Taxes and Length of Stay in South Florida
As if the sunny skies and natural beauty wasn’t enough, Florida’s tax advantages are very appealing. With no estate or inheritance tax, or income tax (including pension income, social security benefits, IRA and 401(k) withdrawals), the state tax situation is a big draw.
Maintaining and Securing Your Second Home in South Florida
Many people lament the stress involved with owning a property that stands vacant for any length of time. Keeping it safe from vandals, wear and tear, and severe weather activity from afar can seem like an overwhelming task.
However, by hiring Florida Estate Management Services (FEMS), you are assured of the most comprehensive service money can buy. Our dedicated team appreciates that your home is your biggest investment and your most valuable asset – for monetary and sentimental reasons. Contact us today for more information on our services for your second home in South Florida.