The hidden costs of home ownership

Dear Sunshine Market Community,

As we dive into the world of homeownership, there’s so much to consider beyond the mortgage and the down payment. For this issue, we’re shedding light on the lesser-known expenses of owning a home in Florida. From unique insurance needs to the impact of our sunny (and stormy) climate, these are costs you’ll want to factor into your budget before buying. Let’s dive into what you need to know to make informed decisions and avoid surprises along the way.

1. The Insurance Reality in Florida

In Florida, home insurance can be a big factor in the total cost of homeownership. Due to our exposure to hurricanes and coastal flooding, insurance rates can be significantly higher than in other states. Basic home insurance may not cover everything, so flood insurance and hurricane coverage are often essential, depending on your location.

📌 For more information on how to choose insurance and budget for these costs, check out this article from insurance.com

📌 Also a free copy of a natural disaster preparedness and response guide published by the university of Florida

2. Hidden Costs in HOA Fees and Community Expenses

If you’re moving into a planned community or condo, HOA fees might be a part of your monthly budget. But beyond just fees, some HOAs have assessments or special charges to cover major repairs or upgrades. These costs can vary greatly depending on the community and its amenities. Most HOA’s in Florida have been increasing in cost on an annual basis. Almost 1/4 of associations in the state have skyrocketed to over 30%. Florida also has the highest percent of homes within a HOA with a total of 45% of all homes have a HOA fee associated. That’s a total of 3,855,000 in total.

📌 Here is a Great article on the rising cost of HOA’s and how that can impact you and your local economy “HOA statistics are analytics” by doorloop.

3. Property Taxes and Homestead Exemptions Explained

Property taxes can be a significant cost in Florida, especially in popular areas with rising property values. Many first-time homeowners may not realize how these taxes change over time. Fortunately, Florida’s Homestead Exemption can offer some relief, helping reduce property tax for primary residences. This exemption is a valuable tool for managing long-term costs and saving money annually. the dead line to file for homestead is April 1st and the county tax office won’t allow you to start the filing process before January 1st.

📌 Learn more about property taxes and exemptions from SmartAsset.

4. Surprising Maintenance Costs Due to Climate

Our tropical climate brings unique maintenance requirements. Frequent storms, high humidity, and heat can wear down roofs, HVAC systems, and even foundations faster than in other states. Regular pest control, mold prevention, and hurricane-proofing can add unexpected costs, making it crucial to budget for annual and seasonal upkeep.

📌 For a helpful checklist on annual maintenance, and check out what Florida Peninsula insurance has to say about it

5. Curb appeal and maintenance for Resale

when it comes to reselling your home, there are a lot of factors to consider. How long ago you bought it and if you did any work to the inside? Have you maintained the yard? How is the exterior of the of the house? All of those things are considerations to think about. In my experience most buyers want a house that is already 95% completed and maintained, they don’t want to come in a have to do a bunch of work to it. There may be some expenses when it come to getting your home market ready.

📌 Get tips on increasing the curb appeal and getting your home ready to sell in recent blog post of mine I published.

Conclusion: Plan Ahead for a Smarter Investment

While Florida offers a fantastic lifestyle and climate, owning property here comes with its unique challenges and costs. By preparing for these hidden costs, you can enjoy the rewards of homeownership without unexpected financial strain. If you have any questions about budgeting for a Florida home or want to talk about what’s happening in the market, don’t hesitate to reach out.

Thank you for joining us for this edition of Sunshine Market Briefing! Stay informed and empowered as we navigate the Florida real estate market together.

Best regards, crush your goals this week! Peace be upon you.

-Your Sunshine Market Briefing Team