DO NOT BUY A HOME IN FLORIDA UNTIL YOU SEE THIS

DO NOT BUY A HOME IN FLORIDA UNTIL YOU SEE THIS. What You Need to Know Before Buying a Home in Florida

DO NOT BUY A HOME IN FLORIDA until you see this and understand exactly what it means to buy a home in Florida and what you’re signing up for. Buying a home in Florida is a little different than anywhere else in the country. Although we help hundreds of buyers make Florida home, I want to make sure before you get excited and sign on the dotted line that you know exactly what you’re getting into.

Today we are going to dive into taxes, insurance, HOA, CDD, and all the things that are different in Florida.

Let’s start by talking about HOAs, because homeowner associations are everywhere in Florida. Over 70% of homes have an HOA. Fees range widely, from as little as $10 per month to $600–$800 per month, depending on amenities, gated access, and maintenance coverage. Some HOAs include landscaping and even roofing, while others only cover basic rules and upkeep.

Most HOAs are run by a volunteer board of residents, supported by a management company that handles finances, rules, and homeowner requests. In new construction, the builder controls the HOA until about 90% of the homes are occupied.

Now let’s talk about property taxes. The tax amount you see online is not what you will pay. Homes are reassessed every January 1st, and taxes reset based on your purchase price, not the previous owner’s. For a primary residence, expect about 1.2–1.4% of the purchase price. For a second home or investment, expect closer to 1.5–1.6%.

CDDs are also very common in Florida, especially in master-planned communities. A CDD is an infrastructure fee used to pay for roads, landscaping, and development costs. It includes a 30-year bond portion and an ongoing maintenance portion, and it is paid with your property taxes.

Next, let’s talk about homeowner’s insurance, which is one of the highest costs in Florida. Insurance depends on the age of the home, roof, windows, elevation, and flood zone. There is no such thing as hurricane insurance, there is wind coverage and flood insurance. Flood insurance typically caps coverage at $250,000, which may not be enough for higher-value homes. Generally, newer homes have lower insurance costs.

Another major factor is rental restrictions. Many buyers assume they can rent their home, but that’s not always the case. City limits may allow 7-day minimum rentals, counties may require 30-day minimums, and HOAs can be even stricter. Some neighborhoods don’t allow rentals at all or require ownership for one to two years before renting.

When it comes to new construction, the advertised price is never the final price. The base price does not include lot premiums, structural upgrades, or design selections. The final price is often 15–20% higher than the starting price.

Florida also has many gated communities, which often come with higher HOA fees due to gate maintenance and staffing. Whether gated or non-gated is a personal choice, but it does impact monthly costs.

Florida homes are built under strict building codes due to hurricanes and high winds. Many homes use concrete block construction, impact windows, and reinforced roofing systems, which increase safety but also cost.

Maintenance costs are also higher in Florida. Common expenses include pool maintenance, pest control, year-round landscaping, and dealing with salt-air corrosion. AC units average about 10 years, and tile roofs often need replacement sooner than expected due to insurance requirements.

Fencing is another item buyers often overlook. Many neighborhoods restrict fencing or specify exact materials and styles, so always check HOA rules if you need a fenced yard.

Finally, when you sell a home in Florida, you will pay documentary stamp taxes. While Florida has no state income tax, there are transaction costs tied to homeownership.

Florida is an amazing place to live, but buying here requires extra knowledge and preparation. Understand the rules, costs, and long-term responsibilities before purchasing. And remember, always work with a local expert.