PROPERTYSPARK ARTICLE

How Much Does It Actually Cost To Own A Home In Florida?

The desirability of the state of Florida increases, where beneath the surface, there’s an array of expenses and considerations that potential home buyers should be aware of. Before saving up, learn about all these fees associated with property ownership, especially if you are a nonresident or new to the home buying process.

True Cost Of Owning A Home In Florida

Downpayment

The upfront payment in a housing transaction is considered a down payment; the biggest money you transfer during the purchase. Traditionally, a mortgage requires a down of minimum 6% of the property price for first-time buyers. The rate is 17% for other types of buyers. With a conventional home loan, you, as a first-time buyer in Florida, often need to put 3%. An FHA requires 3.5% with an ideal credit score. The requirement for down may rise if the score is not more than 500. You should prepare finances for at least 10% down if you own a second home.

Payment Of Interest

Home buyers are affected by rising mortgage rates, followed by a higher federal funds rate. It often leads first time buyers to opt out of a bigger loan intent, as a high interest will tend to follow high borrowings. Home prices also rise due to interest hikes. As a result, buyers face difficulties finding homes in their price range. Sometimes, they end up switching to renting a house.

In the last four years, Florida’s interest rate and monthly payment increased by 146% and 134%, respectively. If you are bound to necessities and out of cash, you must take a substantial amount of loan, which would mean spending a greater chunk of your budget on house each month.

Closing Costs

Closing costs for buyers include application fees, origination fees, title insurance, fees for property damage, etc. The total expense may amount to 3% of the home’s price. If buyers have any outstanding tax obligations relevant to property, they will need to be covered to allow ownership transfer.

Estimated Closing Costs In Florida For Buying A House:

HOA Fees

HOA fees are dues, paid by owners when they live within an HOA community. These dues are mandatory. The average membership fee for a single-family home is $250/month. If you move to an HOA community in Florida, you could eventually be paying significantly more. Some communities charge less than $100, while others charge more, depending on what it covers.

General Maintenance Performed By HOAs:

• Upkeep of common areas
• Legal services
• Road maintenance
• Gate maintenance and repairs
• Electricity for common areas
• Tree trimming and landscaping
• Management of irrigation systems
• Pest control

Utility And Maintenance Expenses

Owning a house means owning expenses in conjunction. Utility cost is your day-to-day expenditure after purchasing a home. You can expect to pay $300 a month for unvarying services.

Home maintenance expenses are required in line with property conditions, location and climate change. The older the property, the more care it usually needs. A construction requires 0.75% of its value in maintenance after ten years and gradually seeks more in following decades. Such dealings include pool service, lawn fertilization, pest control, flood insurance, etc.

Realtor’s Fee

The total commission for real estate service in Florida is 5.40% on average, from which half is borne by the buyer. Shop around for the best value so you avail a suitable discount without needing to consider the quality of assistance. Florida has a higher fee than the national average, which can indirectly affect buyers. Because home sellers raise their asking price to compensate for the commission.

Does the price remain same if you buy a home in an Equistrian Community?

The answer is No. Purchasing a home in an Equestrian Community often comes with a premium, reflecting the specialized nature and appeal of these properties. Due to the unique features and facilities tailored for horse enthusiasts, homes within Equestrian Communities are typically priced higher than those in regular residential areas.

For example, Florida has the state’s expansive horse properties in Homeland within the range of $1.4M to $3.6M. This illustrates the premium associated with such specialized communities, reflecting the high demand for meticulously designed spaces that cater to both the practical needs of horses and the desires of discerning equestrian homeowners. When navigating these upscale markets, having a realtor experienced in Equestrian Communities is invaluable, ensuring you make an informed decision in line with your lifestyle and investment goals.

With so many considerations, owning a home in Florida can be a rewarding experience. When evaluating your budget for buying property, account for the hidden payments to make an informed purchase before being the next homeowner in the state.