| Start up Costs. This cost will vary depending
on the price of your home. Start up costs include; initial transfer
taxes, initial home insurance etc. A rule of thumb is to budget
about 3% of the price of your home for these costs. Use the
closing costs calculator
to get a estimate and explanation for these costs. |
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| Taxes - Florida Real Estate taxes are ad
valorem which means according to value. Thus the size of the tax
bill will depend on the value of the home you purchase. Real Estate
Taxes are paid annually, with the tax bills normally sent out in
October. Taxes are paid in arrears. Mortgage lenders normally
require
escrow
for taxes and taxes are paid from the escrow account. Taxes are
determined by the county property appraiser and in many cases taxes
for individual properties can be looked up via the
appraisers web site. |
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| Insurance - Homes owners or hazard insurance
is normally required by mortgage lenders. In many cases if you
purchase a condo, the condo
fees will include insurance on the structure. Home insurance
in Florida is expensive but the exact cost will depend on the
closeness of the the home to the ocean. |
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| HOA/Condo Fees - Many homes in South Florida
are in developments or are
part of a condo. These homes
come with amenities such as a pool, tennis courts a clubhouse etc.
These amenities are paid for out of monthly, quarterly or a annual
maintenance fee that is paid for by each resident. |
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| Property Management - If your home is not a
condo it will be worthwhile to
pay for property management to maintain the property when you are
absent. |
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