Why move to Florida?

[mojavesue]

I see people mention Texas as a retirement destination because of no state income tax. But the government there gets its revenue from property taxes which are very high. Florida has EXTREMELY high property insurance if you can even get it. I have family there in Titusville. They have to get their roof replaced every 10 years just to have the access to insurance.

We have 2 residences, one in Las Vegas and one in a small community outside of Albuquerque. Although Nevada has no state income tax, it is still more expensive to live there than Albuquerque. But both locations are very affordable. Our property taxes are 5500 bucks a year on homes worth a million combined. Income tax in NM is about 600 bucks a year. We'd pay more than that in Vegas just to register our cars! We love both places and split our time between them during the year. We are desert rats and would die in the humidity!

 

[aja8888]

I see people mention Texas as a retirement destination because of no state income tax. But the government there gets its revenue from property taxes which are very high. Florida has EXTREMELY high property insurance if you can even get it. I have family there in Titusville. They have to get their roof replaced every 10 years just to have the access to insurance.

We have 2 residences, one in Las Vegas and one in a small community outside of Albuquerque. Although Nevada has no state income tax, it is still more expensive to live there than Albuquerque. But both locations are very affordable. Our property taxes are 5500 bucks a year on homes worth a million combined. Income tax in NM is about 600 bucks a year. We'd pay more than that in Vegas just to register our cars! We love both places and split our time between them during the year. We are desert rats and would die in the humidity!

In Texas, the state gov gets its revenue (a good chunk) from oil and gas royalties. Property tax, which averages roughly 2% (not the highest in the nation) goes primarily to county governments. WE have no state income tax here.

 

[FlaGator]

After my wife passed away last December, I considered moving away from here after 30 years living in this area (Texas). Several trips back East where I spent half my life ended with a NO GO. Reasons include housing is too expensive (for a comparable place), all or most of my old friends are gone, remaining family is almost gone, and the traffic is horrendous in some areas I would consider. I could handle winter OK though.

So I came back. And I am staying.

What I have realized is that my friends (close knit group) are all here and so is my daughter and her family (no grands though). I'm not starting over again.

Ding, Ding, Ding, I'm with you AJ.

First wife passed several years ago and I considered moving "back home" to Phoenix where we both grew up. It had been 15 years since I spent any time there and sent the kids out to stay with relatives/friends for a month-in the summer. I went out half-way through. Bad experiences for the kids with family, and they hated the oven-like heat although they had a pool everywhere they stayed.

What that made clear to me is that you can't "go home". Life experiences have changed even close friends, the daily environment and living is now unfamiliar, so it doesn't feel like "home" anymore.

I've now spent more consecutive years in FL than anywhere else. The Beautiful Princess bailed and moved west to be near her family. My kids are starting their adult lives and it is likely they will stay in FL or nearby. Also have friends and family reasonably close. I have thought a lot about the next few decades, and I believe I will live the rest of my life as a Floridian

Now, if some 60 y.o. hottie who can carry her own baggage knocks on my door and wants to move to some place reasonable, I might change my mind

 

[cj1717]

FL has changed and is changing daily. It's not the paradise it used to be. Beware!

 

[Montecfo]

In Texas, the state gov gets its revenue (a good chunk) from oil and gas royalties. Property tax, which averages roughly 2% (not the highest in the nation) goes primarily to county governments. WE have no state income tax here.

The property tax which I see higher than 2% in many parts of Texas is a real deterrent for retirees in my opinion. We have discussed moving back some day but the property tax (and deduction caps) are a hurdle.

No SIT helps but I can keep income low. Can't fix property taxes.

And the state is simply not as inexpensive as it once was.

 

[W2R]

Many years ago when I lived in College Station, Texas, they separated "property taxes" from "school taxes" (which were just as large as the property taxes). So, you paid for public schools just like every place else I ever lived, but it wasn't included as part of the property taxes.

I think this sometime caused confusion about how much the property taxes were, there, at that time. Just trying to help!

My dear daughter went to public schools there and they were absolutely excellent. We were within walking distance of Texas A&M University, and since she was in the honors classes, many/most of her classmates were smart, motivated professors' children. Some of our friends without a school aged child, purposely lived out in the country where the school taxes were lower.

 

[Badger]

FL has changed and is changing daily. It's not the paradise it used to be. Beware!

+1
I have lived in Florida for just short of 60 years. For awhile I lived in a sleepy little town called Orlando (before Disney) and then later in NE Florida. My wife has lived in NE Florida for about 74 years. We both have seen Florida change considerably during that time and the crowds, traffic, urban sprawl, etc. have been rapid and not slowed down yet. We have been lucky to cut out our little corner of the state decades ago in a "bedroom" town that is settled with everything you need for shopping, entertainment, dining, minimal tourism, military base, a short walk to the beach, etc. within 5 minute walk -15 minutes drive. Otherwise we would have moved.
I suppose Paradise has a different definition to each of us but heavy tourist traffic and crowded areas that are usually in the desirable locations are in extremely short supply. Joni Mitchell probably said it best as far back as 1970. They paved paradise and put up a parking lot.

Cheers!

 

[aja8888]

The property tax which I see higher than 2% in many parts of Texas is a real deterrent for retirees in my opinion. We have discussed moving back some day but the property tax (and deduction caps) are a hurdle.

No SIT helps but I can keep income low. Can't fix property taxes.

And the state is simply not as inexpensive as it once was.

States with higher property tax than Texas:

According to the WalletHub property tax study, the state's average residential property tax rate of 1.80% is the 7th highest in the nation. The only states with higher average rates are Wisconsin, Vermont, Connecticut, New Hampshire, Illinois, and New Jersey.

Some of the above have a state income tax. Connecticut also has a capital gains tax.

While Texas may not be as inexpensive as it was in the past, I can live with it and no state income tax.

Housing is generally less expensive here too. My NEW home (completion in Sept) is costing me $160/sq. ft. for a 4 bedroom SFH in a nice area.

 

[Montecfo]

States with higher property tax than Texas:



Some of the above have a state income tax. Connecticut also has a capital gains tax.

While Texas may not be as inexpensive as it was in the past, I can live with it and no state income tax.

Housing is generally less expensive here too. My NEW home (completion in Sept) is costing me $160/sq. ft. for a 4 bedroom SFH in a nice area.

My guess is that 1.8% is either not counting school taxes or is outside the major metro areas.

But understand I love Texas, not trying to bash it. But when I house shop I always notice the RE taxes.

 

[aja8888]

My guess is that 1.8% is either not counting school taxes or is outside the major metro areas.

But understand I love Texas, not trying to bash it. But when I house shop I always notice the RE taxes.

My last tax rate in Conroe was ~ 2.1%. Then I had a Homestead exemption and a 65+ year old tax freeze on the school tax. Tax here in TX is done by county and each area of the county may have a different tax for schools due to new schools being built in an area.

All in, my tax at the last home, a 2,000 square foot sfh in The Woodlands, was about $3,600 annually after exemptions. The house was worth about $300,000 based on recant sales, but i can't recall the county's appraised value.


There is a lot of tax variability here in Texas due to county needs.

 

[Koolau]

I see people mention Texas as a retirement destination because of no state income tax. But the government there gets its revenue from property taxes which are very high. Florida has EXTREMELY high property insurance if you can even get it. I have family there in Titusville. They have to get their roof replaced every 10 years just to have the access to insurance.

We have 2 residences, one in Las Vegas and one in a small community outside of Albuquerque. Although Nevada has no state income tax, it is still more expensive to live there than Albuquerque. But both locations are very affordable. Our property taxes are 5500 bucks a year on homes worth a million combined. Income tax in NM is about 600 bucks a year. We'd pay more than that in Vegas just to register our cars! We love both places and split our time between them during the year. We are desert rats and would die in the humidity!

All states have their expensive idiosyncrasies. People in the Islands with wood framed houses typically have to tent and treat for termites every 10 years or so. People in concrete buildings have to treat spalling. No where is cheap to live. First you pick the kind of place you want to live and then figure out how you're going to afford it.

 

[JP.mpls]

That's why we and probably many other people don't move when they retire. I have some 30 and 40 year friendships that can't be replaced. In fact, I've been in a band with the same 2 people for 40 years.



So, our retirement plan is simple. We stay where we are and go away in winter for a couple months to escape the cold.

Music,
I don't want to give up the life I've established in Minnesota for 60 years, so I'm not going to.

I'm just taking your strategy a little further, and snowbirding all winter in Florida.

There is some work and hassle involved, but it is also an adventure . I'm starting to establish a second group of friends down there too. I think the reward is having the best of both worlds.

FYI: It is surprisingly how many MN friends and family don't mind coming down to visit in the middle of the winter.

Take care, JP

 

[523HRR]

In Naples, Florida for five years now. We love the warm weather, great neighbors, incredible wildlife, abundant golf, amazing restaurant scene, sugar white sand beaches, awesome boating, and lower taxes / cost-of-living (vs CT). YMMV.