South Florida has continuously attracted the interest of people coming from colder states. Be it the famously sunny Florida weather or its flourishing real estate market, South Florida has a certain allure not even New Yorkers can stay indifferent to. And it's not just about the weather. Certain financial factors have contributed to New Yorkers buying up homes in South Florida. Hence, we will discuss the main reasons why you might want to consider buying your first home in Florida if you come from New York.
One of the main reasons South Florida is so popular is that it has no personal income tax. As a result, many New Yorkers have set their sights on Florida. Here, they can spend their days away from rising state and local tax deductions. And it is not only New Yorkers that are dashing their way south. Florida has seen an influx of around $8 billion from residents coming from various other US states. So, if you are interested in buying a house out of state in 2021, Florida might be the right place for you.
Costs of living in New York are 50% higher than in the Miami area
Some estimates show that living in the Miami area costs half of what you need to live comfortably in NYC. So, whereas food and other groceries cost a negligible 8% less in Florida, housing prices in NYC are a whopping 106% higher than in FL. This means that you have to pay double the amount you would pay in Florida to purchase an average NYC property.
When you consider that a typical New Yorker pays 58% more for utilities and 25% more for public transportation compared to a resident of Florida, and you already have a couple of good reasons to consider moving to South Florida this year.
Living in South Florida is much more affordable in comparison to New York.
If you are already in the process of purchasing a property in South Florida, we recommend you hire movers familiar with this route well before the period when you plan to move in. As we mentioned, many people from New York, New Jersey, and other states are moving to Florida. For this reason, you might want to act quickly to secure your ideal relocation date.
In fact, this 'southern migration' has even been increasing in the wake of the COVID-19 pandemic. This kind of forethought will save you from experiencing a lot of stress that is almost unavoidable when you have to pack and relocate somewhere in a short timeframe.
Naturally, these figures are just averages. You can find luxurious estates or minimalistic condos in various price ranges both in NYC and South Florida. So, you can find condos priced quite reasonably in central Miami neighborhoods such as Edgewater and Brickell. However, apartments in Miami Beach easily reach NYC prices, primarily waterfront properties.
South Florida is becoming a cultural hub
It is not just the tax benefits and Florida economy that appeal to New Yorkers. Formerly known as a tourist and retiree haven, Miami has evolved into a substantial cultural spot for artists and performers. For instance, the newly opened Perez Art Museum has put Miami on the map of all art appreciators in the US.
All New Yorkers who appreciate art will also be delighted by the developing Wynwood Area in Miami. This neighborhood houses many smaller museums and art galleries, establishing itself as the artsy, avant-garde area of Miami. Note that you can relish in the booming South Florida art scene by attending the "Art Walk". This is an evening event organized every second Saturday of the month where prominent art galleries open their doors to the public.
And it is not just these factors that have contributed to Miami's changing reputation in the world of culture. The Miami Museum of Science is another institution that is significant for diversifying South Florida's cultural map.
The South Florida area is also becoming a financial powerhouse
South Florida is becoming increasingly attractive to investors and bankers. This trend has established Miami as an important financial hub in this part of the country. What's more, many successful companies from Latin America have based their US headquarters in Miami, primarily due to its geopolitical significance and bilingual and multicultural heritage.
You do not have to pay state and city personal income taxes as a resident of Florida
As we have mentioned, you do not have to pay personal income taxes if you attain first or secondary residency through purchasing a property in FL. Florida's leading source of profit comes from sales tax and excise taxes. Compare this to the 13% of your New York tax bill going towards state and city taxes. Evidently, you are in for a significant increase in your finances if you relocate to Florida to gain residency.
There are significant tax benefits that explain why New Yorkers are buying up homes in South Florida.
There is also no capital gains tax in South Florida
Speaking of taxes, since you do not have to pay income tax if you are a Florida state resident, you also do not have to pay capital gains tax as an individual. Unfortunately, it is not so easy to move your residency from NYC to South Florida. New York State tax authorities do not allow its residents to change residency just like that.
New York’s taxes do not apply only if you move permanently to South Florida.
This means that you still have to pay New York tax even though you have a property in Florida. So, if you spend more than 180 days in NYC and have property here during the taxable year, you have to pay the mentioned taxes to the State of New York.
However, if you decide to go to great lengths and move permanently to South Florida, the payoff will be huge. As we discussed, acquiring residency in Florida is not easy but is worth it in the face of so many tax benefits you will enjoy. If you decide to move to South Florida for good, you might consider getting rid of some items, such as winter jackets and skis. This will make your relocation both easier and cheaper, and your new home clutter-free. However, this doesn't mean that you should leave your valuables behind, especially your precious artwork. Experienced movers can have your art safely transported to your new home alongside other important belongings and luxury items you intend to transfer to your new South Florida estate.
All in all, we hope you enjoyed this short article on the main reasons why New Yorkers are buying up homes in South Florida. See you at the beach if you decide to move to the Sunshine State!
Check out New York homes for sale here, and Florida homes for sale here.
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