South Florida is a hot area for real estate sales and investment. With more and more affluent residents relocating here, residential properties in the luxury market continue to be in high demand. Additionally, the recent trend of out-of-state corporations moving into the Palm Beach area, indicate that the commercial real estate market expansion is likely to continue. Here are some considerations regarding South Florida real estate and the out-of-state buyer.
The Time to Move is Now
If you are living in a high tax personal income property state, it has probably not escaped your attention that there have been recent changes to the federal tax laws. In 2017, the United States Tax Code was amended, and now there is a cap on the deduction amount a taxpayer can claim on their federal return for state and local personal and property tax. Before the change in the law, there was not a limit on these deductions. Now, residents in certain states are facing massive tax burdens. By contrast, Florida does not have a state income tax. The new tax laws go into effect this year, and several high wage-earning residents of the impacted states appear to be migrating to South Florida, where they can purchase luxury properties and enjoy freedom from excessive taxes. There is also a migration from areas of the country where residents with high personal taxes are opting to move into the area. Further, Florida’s pro-business culture has been steadily attracting corporate relocations. All of that being said, if you are considering buying property in this community, it would probably be in your best interests to begin looking now.
There is a Strong Rental Market
With all of the recent tax migration activity into South Florida, there appears to be a thriving rental market. Out-of-state buyers who would like to invest but delay moving into the area may want to consider purchasing property and then renting it out. Additionally, South Florida boasts several universities which fuel the rental housing market. There are also snowbird residents, or those who prefer to live in Florida during the winter months before returning to their home states, and summer tourists who want short-term rentals.
At Rabideau Klein, Guy Rabideau, Esq. and David E. Klein, Esq. are Florida board-certified real estate attorneys with extensive experience with South Florida Real estate. We have the expertise and local knowledge you need to ensure that your business interests are protected during your South Florida real estate transaction. Contact Rabideau Klein today to discuss your real estate legal needs.