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All Contents © 2018The Kiplinger Washington Editors
By Bob Niedt, Online Editor
| November 15, 2017
As you sit there mulling a retirement in the South, approximately 1,000 people are already on their way to Florida today with all their household belongings. Should you join them?
Like many baby boomers approaching retirement age and hunting for a warmer climate to call home in their golden years, I too am on the prowl for a new locale, though my target date is further down the road. My wife and I recently scouted cities and towns in Florida for a possible landing pad -- so I have some skin in the game.
But Florida isn’t all about the beaches, Disney World and the massive retirement community known as The Villages. I interviewed experts and residents for tips on what you need to know about moving to Florida. So grab an OJ and dive on in. The water’s warm, but. . . complex.
Expect lots of company if you retire to Florida. There are already more than 3.5 million Florida residents 65 and older, all looking over their shoulders at the newbies heading their way.
In the 2010 U.S. Census, Florida’s overall population was 18.8 million, including 3.3 million people 65 and older. By 2020, it’s projected to grow to 21.2 million, with 4.5 million age 65 and older. And by 2030, Florida will have a population of 23.9 million, with 6 million of them age 65 and older -- nearly twice the size of the current senior population.
Depending on where you land, you may be surrounded by people who look like you: old. Okay, old-ish. That was my experience during a recent out-of-season vacation along Florida’s Treasure Coast (Atlantic side). Restaurants, grocery stores, bars and more -- all filled with seniors.
“Everything is geared toward retired, older people,’’ says Molly Elliott, 62, a January 2012 transplant from upstate New York who is still working full time and owns a home in Fort Myers Beach (Gulf side). “All the commercials are about things like walk-in bathtubs, insurance, Lifeline, i.e. ‘I've fallen and I can't get up.’ So many volunteer activities are during the workday. It's like they don't think people move down here to work.”
If you’ve visited Florida infrequently and for short periods of time, you probably don’t know the full scope of Florida weather. Thunderstorms are frequent and intense, and Florida is also the lightning capital of the U.S. Sixteen Florida cities rank in the country’s top 30 for lightning strikes, according to WeatherBug.com. Tampa and Cape Coral are number one and number two. Hialeah, West Palm Beach, Miramar and Jacksonville are also in the top 10. Five of the 27 lightning deaths in the U.S. in 2015 were in Florida.
And Florida is often in the bull’s-eye for hurricanes. The Atlantic hurricane season is a long one: from June 1 to Nov. 30 – half the year – peaking in August through October, according to the National Oceanic & Atmospheric Administration. Hurricane Irma, which struck Florida in September, caused $50 billion in losses, with most of the damage caused by wind. (We’ll explain what hurricanes mean to your insurance costs in a moment.)
The other side of the argument? Sunshine and warm temperatures. Lots of it.
Moving to the Sunshine State could save you a lot of money in taxes. Florida, one of our 10 most tax-friendly states for retirees, has no state income tax. It also has no inheritance tax or estate tax.
But snowbirds who maintain a second home in a colder state can’t just tap their heels together to claim Florida as their primary state of residence. You’ll need to show that you spend more than half the year—183 days—in Florida. But don’t expect state tax auditors to take your word for it. Keep a diary or log showing the number of days you spend in each state during the year, says Tim Steffen, director of financial planning for Robert W. Baird. These steps will help your case:
-- Register to vote in Florida, and if you receive a jury summons, perform your civic duty.
-- Apply for a library card.
-- Change your driver’s license and car registration.
-- Establish relationships with health care providers in your new location.
-- Open an account at a local bank, and keep receipts of ATM withdrawals.
-- Shopping locally is also a good idea: State tax auditors sometimes review credit card records to determine where you were during the year.
-- File a Declaration of Domicile with your local county court.
Sure, you can find luxurious waterfront homes for $1 million or more in many Florida communities, but home prices across the state are still recovering from The Great Recession. The median price on a home in Florida is $283,990, according to Zillow. The average sale price in the fourth quarter of 2016 was down $42,000 compared with the same period in 2006, according to real estate brokers Cushman & Wakefield. However, that’s up $83,000 since hitting bottom in 2011.
“Tight supply and pent-up demand are driving price increases and pace of sales as new residents snap up homes in fast-growing metros,” according to the Cushman & Wakefield report.
Median single-family home prices in Sarasota ($275,000), Gainesville ($224,625) and St. Petersburg ($248,450) are near or below the national median ($266,200). The very best values in waterfront property may lie in Tampa Bay, suggests Dania Perry, a real estate agent with Century 21 Jim White & Associates in St. Petersburg, Fla. “While the market is busy, prices remain significantly lower than places like the greater Miami area, Sarasota, Naples and the southeast coast of Florida,” she says. “Compared with major metro coastal areas, Tampa Bay is clearly one of the most affordable in the U.S.”
Specific Tampa Bay areas offering great values, according to Perry, include North Tampa, Tarpon Springs, Palm Harbor and Odessa. Beachfront values can be found in Redington Beach and Treasure Island.
The risk of hurricanes makes buying homeowners insurance in Florida much more complex and expensive than it is in many other areas. Expect to pay a higher deductible for hurricane damage -- generally, 2% or 5% of your coverage amount for damages caused by a hurricane. Try to keep enough money in your emergency fund to cover those potential expenses.
It’s important to find out about a house’s insurability before buying it, so you don’t end up with annual premiums that are several thousand dollars more than you were expecting to pay. Before buying a home, start with a wind mitigation inspection in addition to a standard home inspection. “The cost to insure a home without wind mitigation features could be four times higher than a home with wind mitigation,” says Chris Heidrick, an independent insurance agent in Sanibel, Fla.
If you live in certain flood zones, your mortgage company will require you to get flood coverage, which is not covered by homeowners insurance. You can get coverage from the National Flood Insurance Program. You may also be able to find flood coverage from private insurers, which may have higher limits than the federal program. Ask your insurance agent about your options, or find out about private insurers selling flood coverage at the Florida Office of Insurance Regulation’s Flood Insurance Resources page.
The availability of coverage and cost of premiums can vary a lot by insurer in Florida. The Florida Office of Insurance Regulation has a great Rate Comparison Tool that provides premium estimates from insurers in your county. Among the insurers listed on the comparison tool is Citizens Property Insurance Corporation, a nonprofit created by the Florida legislature to provide insurance to property owners who can’t find coverage from private insurers. You can find an independent agent in your area who works with many companies and knows the local marketplace at
TrustedChoice.com. Also see the Florida Office of Insurance Regulation’s Hurricane Season Resources for more information about your rights, insurers selling coverage in your area, and resources to help you find a policy and get your claim paid.
“Homeowners insurance in general can be tough to get when you live on a barrier island,” Elliott says. “No one wanted to insure us, so we had to use the default state insurer.”
Florida is its very own ecosystem, and the state’s various creatures may do more than make your skin crawl. They might also eat into your budget.
For instance, dealing with termites is just part of the routine for Florida homeowners. Of the 15 U.S. cities with the most termites in 2017, Florida scores four: Tampa, Miami, Orlando and Jacksonville, according to pest control company Terminix. “Because there is no real winter season in most of Florida, termite treatments or a termite program can be valuable for homes made of wood,” says Century 21’s Perry. A termite inspection by a pro ranges from free to $350, and the cost for treatment of termites in a 2,500-square-foot house ranges from $1,250 to $5,000.
Then there are the rats -- on the beach, in the trees, and perhaps on your roof, too. Yes, they are the same rats you know and loath; they've just adapted to the climate and are called, among other things, palm rats and roof rats. “Rats on the beach were a tough adjustment,” says Elliott. “I pay $300 a year for rat control. No regrets on that expenditure. Haven't had any rats since the first year here.”
As a Floridian, you’ll also have to keep an eye out for alligators, panthers and pythons. Oh my. Florida has an estimated 1.25 million alligators of the approximately five million in the U.S., and you might encounter them
slinking across a golf course, gliding in backyard swimming pools or skirmishing with a horse. “Beware of Alligators” signs are posted at lakes, lagoons, parks, ponds, golf courses and elsewhere throughout Florida. Alligator attacks have been on the rise in 2017 due to rising temperatures and people visiting their habitat more frequently, Florida Fish and Wildlife Conservation Commission experts say.
Panthers, the state animal of Florida, are another tale. While there have been no documented panther attacks on humans, they do dine on pets and livestock.
And Burmese pythons, which aren’t native to Florida, are growing in numbers in Everglades National Park -- and showing up in homeowners’ pantries, cars, laundry rooms and other spots.
There’s often a major misconception about Florida as a retirement destination: Many think the state is one big beach. An easy-to-reach beach.
Not so. Those world-famous theme parks? They’re both in Orlando, in the middle of the state, an hour or so car ride to the beach.
“People who are thinking about a move to Florida should really explore the state,” says Century 21’s Perry. “Each of Florida's metro areas has its own vibe. The east and west coasts of Florida are very different -- as different as the Gulf of Mexico and the Atlantic Ocean. North Florida features vast stretches of rolling hills and countryside.”
You already know the big destinations: Orlando, home to Disney World, Universal Studios and their smaller ilk; Miami, if you want to live out your “Miami Vice” or “Golden Girls” fantasies (whatever floats your boat; we’re in a no-judgment zone); and the Florida Keys for a laid-back lifestyle as far south as you can go in the state.<.p>
But other Florida towns belong on your Florida Retirement Planning Tour. I like the vibe of Fort Myers Beach: You’re right on the Gulf (or close to it), there are plenty of 55-and-older communities, yet it remains youthful during the high season, with plenty of young people flocking to the resort area with its boardwalk and bars. We’ve visited in late July and late October and liked it both times.
Sarasota has plenty of beaches, and the small city moves a bit slower than some of the larger towns in Florida. There is a wide array of restaurants and stores in St. Armands Circle, the island shopping center. Another bonus: access to the Sarasota Memorial Health Care system, which is one of the largest medical centers in Florida.
Is retiring to a college town – to teach part-time, take courses (free for folks age 60 or older) or just hang out with the young’uns – a must for you? Check out Gainesville, home of the University of Florida. But bear in mind that Gainesville is deep in the heart of Florida, 75 miles from any beaches.
Ever since you were a munchkin, you knew Florida as a tourist destination. If you visited Walt Disney World when you were a kid (and when it first opened, as I did), you marveled at the crowds. As a resident, you’ll probably only be annoyed by them.
Approximately 113 million tourists visited Florida in 2016, a sixth-consecutive record year, converging on the state’s famous theme parks, beaches and destination spots such as the Keys and Everglades National Park. Orlando alone had 68 million visitors last year, two million more than in 2015, according to the tourism agency Visit Florida.
The high season, when the snowbirds, holiday travelers and spring-breakers visit, is from mid December to mid April, according to travel experts. There’s also summer season, lasting from mid June to mid August, when the kids are out of school and summer vacationers hit Florida. That makes for a lot of people on the road.
“In Orlando, for instance, where I live, the roads near the theme parks are bumper-to-bumper pretty much all day,’’ public speaker and writer Catherine Giordano writes on the ToughNickel real estate blog. “Being forced to drive at 5 miles per hour will give you plenty of time to enjoy the sights -- the tacky and garish souvenir shops and fast-food eateries that line the tourist strip. Inside the parks, everything is shiny and new and clean — a fantasyland. Outside the parks — not so much.”
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