Reasons Why Now Is The Time To Buy in Florida
Buying a home anywhere has its challenges. These days inventory remains low while interest rates and home prices are on the rise. However, there are still good deals to be found if you are looking in the right places. Specifically Florida has some compelling reasons as to why it can be a great time to invest here for your next home purchase.
No Income Tax
The state of Florida is one of 9 states that don’t have a state income tax which makes it an enticing place to live and invest in property. The state collects the majority of its tax revenues from sales tax and property taxes.
Despite states that are tech heavy and have had layoffs, Florida continues to have a strong economy. Many professionals have been relocating here seeking financial stability with the no income tax factor. With this influx of residents the demand for housing has been consistent. One could expect this to continue with property values continuing to increase.
Rates Keeping Prices in Check
Higher rates definitely make for some monthly payment challenges, but they also keep price escalation in check. With years of lower rates we experienced rapid home price increases. Today’s higher rates will moderate home value growth a bit. Rates will also fluctuate so despite them being higher now, you can always refinance down the road when it makes sense.
Builders Offering Incentives
With higher rates comes some buyer resistance. At a certain point a particular home will become unaffordable if rates get high enough to bump a monthly payment out of one’s budget. In some markets, builders are offering big incentives for new home builds. This can come in the form of a rate buydown with getting a higher rate in the 7’s down to around 5% instead.