The answer to this question will be different for each person, but it is vital. There are thousands upon thousands of homes for sale in Florida with median prices as low as $89,300 in the Cape Coral/Fort Myers MSA, $113,000 in the Port St. Lucie area, $107,400 in Ocala, $164,200 in the Sarasota/Bradenton MSA, and $245,700 in the MSA. from West Palm Beach/Boca Raton. The affordability factor is at an all-time high, but, even at these bargain prices, you don’t want second-home ownership to become a financial burden because you didn’t fully understand how much you could afford or the true costs of owning it. owner of a vacation home in Florida. If you’re already paying off a first mortgage and don’t plan on additional rental income from your second home, you definitely need to be cautious with your finances. This article will help you determine the total cost of owning a second home in Florida.
Understand the total cost of your Florida vacation home
One of the most important things to remember about this type of purchase is to understand the true amount of money you will have to spend on a second home. It’s not enough to understand how much money will be involved in the initial purchase, although that’s a good starting point. There are two different types of costs involved in owning a second home: initial or start-up costs, and recurring or one-time costs.
Initial or start-up costs will include items such as:
down payment
closing costs
The cost of any furniture, appliances and accessories.
Installation of a security system, if applicable
insurance premiums
Repair Costs
But then there are a number of other costs you need to consider. Some of these will occur regularly, but others may just be the ones you need to be prepared to only have to pay once in a while. Examples of these include:
Public services (water, gas, electricity, cable, telephone)
Sure
Taxes (property taxes, income taxes on any rental)
Association or Condominium Dues
Landscape maintenance ($100-$150/month is typical in Florida)
Building maintenance and repair costs
Pool service ($50-$100/month is typical in Florida)
Insurance deductible (if you ever have to make a claim)
Home surveillance service ($50-$100/month is typical in Florida)
· Travel to and from your new home from your main home for you and your family or friends.
These are just examples of the type of expenses you may be facing. You need to think about the type of lifestyle you want to enjoy in your second home and make sure you have identified all the costs, whether upfront or recurring, that you will need to add to your second home budget.
It’s a great time to buy any of the thousands of Florida homes for sale and we’d love to see you do it, but only if you’re totally comfortable with the affordability factor!