The thought of nearby beaches and a warm sunny climate attracts thousands of retirees to the southeast each year.
Escaping the discomfort of harsh winters and starting fresh in your golden years has quite the appeal, but it’s important to try before you buy and not let misconceptions about the simplicity of a move to Florida cloud your judgment. Before you pull the trigger and pack up your entire life, take into consideration some of the harsher realities of a life down south.
Accounting for Insurance Costs
If you plan on owning a home or a condo in the sunny state of Florida, it’s important to be aware of the realities of ownership in a state that often finds itself in the direct path of hurricanes and tropical storms.
Costs are extremely elevated in Florida for insurance on properties and vehicles, with well-known insurance companies abandoning the state altogether. You might also be required by mortgage companies to obtain separate flood and wind-damage insurance policies in addition to your standard homeowner’s insurance. Deductibles in the event of hurricane damage can also be much higher than is standard, ranging from 5 to 10% of the coverage amount.
It Isn’t Always Sunny in Florida
Insurance costs in Florida are extremely high for a reason. Thunderstorms, hurricanes and tropical storms make their way through the state frequently, especially during the several-month long hurricane season.
Leaving behind harsh winters is definitely a plus, but living in constant heat and high humidity has its own potential health risks and varying degrees of discomfort. As does finding yourself in the path of storm-force winds and heavy flooding.
Population Fluctuation
Florida is currently leading the nation in population growth year over year. By the end of the current decade, millions more retirees are expected to make landfall. Florida also draws in well over 100 million tourists every single year.
If your retirement expectations are to live a quiet, stress-free life with a small-town feel, Florida might not be the best choice for you.
Double Edged Sword, Buyer’s Market
Redfin reports that sellers are slashing prices across Florida, with inventory in a surplus. This means buyers are able to get a good deal on homes, but doesn’t guarantee it will maintain or appreciate in value as quickly as the rest of the nation as homes are increasing in value by more than a full percent lower than the national average.
Take in the Big Picture
Sunny weather, no state income tax, and an already booming community of retirees makes Florida sound like the perfect place to spend the golden years you worked so hard to achieve, but there’s no need to make an impulsive move down south.
Take an extended trip to Florida and bounce around the state. Get a good feel for the different areas and cities and really consider what it is you do and don’t like. Do you feel at home? Is the weather too hot and humid for you to be comfortable or is it perfect? Are you ok living in proximity to millions of gators and snakes or does that bring a new excitement?
Any decision regarding your retirement as big as moving across state lines is always wise to be considered alongside the help of a trusted financial professional. They might have clients who are living their best lives in Florida able to offer sound advice. They also might have clients who moved to Florida and quickly moved back, finding the realities of life in the sunshine state not what they thought.
To schedule a complimentary financial review with Moore’s Wealth Management, click here or call our office at 770-535-5000, where a staff member is awaiting your call Monday through Friday, 9AM to 5PM.
Sources:
[1] https://www.redfin.com/news/housing-market-tracker-march-2024/
[4] https://www.kiplinger.com/retirement/why-do-people-retire-in-florida-what-you-must-know
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