Why Purchasing a Florida Vacation Home Could Be More Affordable Than It Sounds
Candice Sigmon | At Home Helper
February 3rd, 2023
Indeed, Florida is one of those holiday destinations that many of us dream of escaping to. It's no wonder, then, why many investors and retirees are choosing to invest in vacation homes in The Sunshine State. The real estate pros at Bonita Springs-Estero Realtors explain why.
There's plenty of sunshine to go around
If basking in year-round sunshine sounds appealing to you, Florida has plenty of it. Furthermore, there are just so many excellent vacation spots to choose from that you're almost certain to find a vacation home that ticks all the right boxes for you (that's not too bad on the pocket, either). So whether it's Bonita Springs, Pensacola, or Orlando that tickles your fancy, these are just some of the few places you'll find an affordable dream vacation home.
It's the go-to destination for retirees
The beauty about holidaying in Florida is that there's something for everyone, regardless of what age group you happen to fall in. Moreover, Florida seems to be particularly suited for retirees, so you're certain to find plenty of company as well as appropriate recreational activities for seniors who are still young at heart. Reach out to Bonita Springs-Estero Realtors to find just the right neighborhood.
It's an excellent choice for growing your investment portfolio
If you're thinking of investing in a vacation home either for yourself or to rent out, Florida would be the place you would want a piece of as far as holiday rentals go, with it rated as one of the top five holiday destinations in the world. That said, from an investment perspective, BRIC Group explains how you can see why this would work. Just be sure to register your vacation rental business in such a way that your personal assets will still be protected should disputes arise in the future. One of the best ways to protect your personal assets is to establish a business with Limited Liability. Here, forming an LLC in Florida would work in your favor, and you can hire a lawyer to file for your business for you. Alternatively, you could opt to use a formation service, which could work out to be considerably cheaper.
There are numerous tax benefits in Florida
For retirees looking to save that bit extra on their income by not paying out as much as far as taxes are concerned, Florida is the place to be as far as state income tax does not apply here. As CNBC notes, property income tax is also limited here, which is excellent from a savings perspective, which means you can reinvest some of your savings in more real estate or use the extra money towards maintaining or upgrading your vacation rental if you wanted to. When looking at prospective properties, you’ll want to go online and research the area first to determine what homes are going for. For example, homes are currently selling for a median price of $600,000 in Bonita Springs, up 20 percent year over year.
Property maintenance is a breeze
Maintaining your vacation rental should be easy to do, too. With a booming economy and tourists coming to visit this bustling city from near and far, you're sure to find affordable maintenance services such as landscapers, painters, repairmen, etc., on call to keep your vacation rental looking in tiptop shape at all times. You could even take on some of these projects yourself if you have the time to spare. And it probably won't even feel like work with the sun on your skin and a light salty breeze blowing through your hair.
Insure and Protect Your Investment
One critical decision you’ll need to make is which company to choose among the various homeowners insurance options available in Florida. You’ll want to compare providers on cost—average homeowners insurance prices in Florida are higher than the national average, but that can fluctuate depending on the terms of your coverage. Compare ratings and read reviews of the many different insurance companies, and you’re sure to make a good choice.
In summary, if you're looking for a vacation rental that you're sure to make money from, its location will matter a great deal. As long as you make smart financial decisions with forming your LLC, tax management and insurance, you can't go wrong with choosing Florida when it.