What You Must Know Before Buying Property in Tampa, Florida
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.
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.
If you’re looking to invest in rental income, rather than buying a home to live in yourself, you should know investors can generally expect to earn $1,999 in monthly income from traditional rentals and up to $2400 in Airbnb rentals.
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.
Florida Department of Revenue statistics show that Tampa is one of several major Florida cities that have not raised their millage rates since 2008. Florida has an average property tax rate of 0.85%, which is below the national average of 1.07%. The minimum combined 2021 sales tax rate for Tampa Florida is 8.5%.
Know About Deed-Restricted Communities in Florida
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.
If you’re in an eligible area, you can participate in the Federal Emergency Management Agency’s (FEMA) National Flood Insurance Program. It’s important to identify flood-prone areas before purchasing property, to save undue stress and protect your home or investment. This is where a reputable real estate agent can be particularly valuable.
Florida Homeowner’s Insurance is a Must
Even without taking the possibility of flooding, sinkholes, and inclement weather into account, solid homeowner’s insurance is essential. Good home coverage should include all of the above, plus events like theft, fire, wind damage, and vandalism.
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.
If you are considering to buy a property in Florida, check out why it is an ideal place to launch a start-up business in Florida here.
Content provided by Creative Marketing for Destination Tampa Bay™. Photos are multiple sources for editorial use only. Feature photo supplied by Visit Tampa Bay taken by Keir Magoulas. All rights reserved. Looking to move to the Tampa area? Check out the economic development in the City of St Petersburg here. Look on Tax help for business here.
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