The housing market in Florida is booming in 2021, even considering the damage done by COVID-19. But what should you know before buying property in Tampa, Florida? Demand is up for all types of houses across the state, particularly in Tampa. But if you’re looking to purchase property in Tampa, there are a few things you should know before you sign on the dotted line.
First, a few quick facts: Tampa is currently home to about 400,000 people, and the population over the last decade has grown by over 18%. Buying a property in Tampa, housing units cost about $345,000 on average, with an average monthly mortgage payment of $1,622. Homeowner’s insurance in Tampa costs about $1,570 annually, making housing costs in the city very favorable compared to other urban areas across the country.
Overall, these numbers make buying a property in Tampa appealing for home buyers and investors alike, meaning demand is likely to stay high well into the future. But there are still some things to keep in mind before you buy.
Can You Afford To Buy Property in Tampa?
Before you buy a home in Florida (or anywhere else), you should first find a reputable real estate agent. A good agent can save you a lot of time and money as you look for the perfect home.
Tampa is the 72nd most affordable city in the United States according to BizJournals. The median price for a home is about $345,000. This will give you a good baseline for determining how much house you can afford.
As with any major purchase, you’ll have to take into account your income, expenses, debts, and savings. A good early step is to find a home affordability calendar to get a realistic look at your options.
Florida Has No State Income Tax, Inheritance Tax or Estate Tax
One piece of potentially good news for home buyers in Tampa? No state income tax, inheritance tax, or estate tax. You can still expect to pay property, gas, and sales tax, but overall the tax situation in Tampa is favorable compared to elsewhere in the US.
Deed-restricted communities are popular in Florida. A deed-restricted community is a neighborhood with a governing homeowner association that enforces regulations about the appearance of homes and the use of property, including what pets may be allowed, how a house is painted, and where vehicles may be parked.
Home buyers in Florida may expect to pay anywhere from $1,200 to $3,600 in annual fees for owning property in one of these communities. They usually offer better infrastructure and more.
While there are some perks that come with a deed-restricted community, like stability and higher long-term property value, it pays to research ahead of time to make sure such a neighborhood is the right fit for you.
Watch for Florida Sinkholes
Not all affordable property is created equal. Unfortunately, Florida has more sinkholes than any other state in the US. Sinkholes can occur naturally and may be triggered by rainfall, tropical storms, and human activity.
If you’re buying property in Tampa, it’s important to research the area you’re interested in and be aware of the potential dangers. A sinkhole can cause considerable damage, displace your family, and wreak financial havoc.
Heavy Rains and Flooding Insurance
Sinkholes aren’t the only natural phenomenon to look out for. During summer, Florida can experience heavy downpours, flooding, and even hurricanes, especially in coastal areas. As with sinkholes, you’ll want to do some research to determine the risks in your area and act accordingly.
How much you pay in home insurance will depend on factors like your insurance company, zip code, coverage level, and deductible. In Tampa, the average cost for homeowner’s insurance is about $1,570 annually, though prices can fluctuate anywhere from $400 to $2700. So, it pays to shop around!
See Why it is Best to Hire a Tampa Home Property Professional
We opened with recommending a reputable property professional, but it’s worth mentioning twice. A skilled real estate agent can help you find the right property for your needs, help you assess the risks, and assist you with closing the sale. If you’re looking for a place to get started, the Tampa Real Estate Insider is a good jumping-off point.
Do you have select property in Florida to sell? Let Destination Tampa Bay™ help bring you customers!
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