Florida has emerged as one of the premier tourist destinations in North America. Its tropical climate, white sandy beaches, theme parks and exceptional food have lured tourists from across the US and beyond to its shores.
Many of these tourists opt to purchase a second home in Florida instead of staying in a hotel every year. This may seem excessive, but there are very compelling reasons why Florida should be at the top of your list if you are considering buying a holiday home.
Click here for more information and to see the current housing inventory.
Tax Benefits
The state of Florida does not collect income tax. It is one of only seven states in the US that does not. The state’s constitution prevents the collection of income taxes and prohibits local municipalities from creating their own income taxes.
For residents of states with a high-income tax rate like New York, California and Massachusetts, purchasing a property in Florida can save thousands of dollars a year on their tax bill. This tax exemption also applies to IRAs, 401Ks and Social Security benefits, one of the many reasons why many retirees choose to spend their retirement in Florida.
Florida also does not collect death tax. This was abandoned in 2005, saving families large sums of money when their loved ones pass away.
Asset Protections
Residents of Florida enjoy extensive asset protection. The laws of the state of Florida protect the debtor rather than the creditor. This means creditors cannot claim your home in lieu of debt repayment unless they are a mortgage lender. The state also extends protection to the cash value of life insurance policies, IRAs, and business assets.
Florida is an Aviation Hub
Because of its high demand as a tourist destination, Florida is incredibly well connected with the rest of the US and beyond. The state handles the third most aviation traffic in the US, with more than 33.5 million passengers passing through its airports each year catching flights to more than 120 destinations.
The Cost of Living is Low
The cost of living in Florida sits 0.5% lower than the national average. That means you are paying around the same as the national average for goods and services but in Florida, because there is no income tax, your money goes a lot farther.
This means residents are able to enjoy the best the United States has to offer, without paying the high prices that often come with it.
The Weather
Lastly, but definitely not least, the perfect Florida weather is one of the most compelling reasons people find to buy property in Florida. Year-round sunshine makes the state a haven of warmth in the winter months and offers respite for many inhabitants of the north of our country.
Owning a property in Florida reduces some of the barriers associated with escaping to the sunshine and will undoubtedly allow you to spend more time there. This, coupled with the tax incentives and low cost of living, will be a boon for your mental health, physical health and economic health.
No Comments