Did you know, roughly 950 people move to Florida every day? We have seen this ‘unprecedented demand’ and the increase in luxury home sales as people in northern states are fleeing the larger cities amid the pandemic.
No longer are people looking just to escape the harsh winter weather in the north, we are seeing people moving south as a quality of life change. Most of the people moving in are from high-taxed areas like New York, Boston, California, and Chicago, according to the New York Times. What makes Florida so appealing is residents pay no state income or estate tax and receive a homestead exemption of up to $50,000 on a primary resident and a 3% annual cap on home assessments.
The sunshine state also grew more appealing with the Tax Cuts and Jobs Act of 2017 which limited the amount of total state and local taxes that can be deducted on a federal income tax return to $10,000. Those living in densely populated areas and commuting via mass transit are now looking to move to areas outside the major metropolitan areas and avoid the close quarters that were inherent with train or bus travel. Families are fleeing cramped apartments and are looking for home offices, home gyms, larger kitchens for increased in-home dining and private pools. What we have noticed, is that people who have seasonal rentals, or who frequent the state, have snapped up permanent residences and turned their short-term stays during the pandemic into a permanent move.
During this time many discovered they could work remotely and with management seeing no drop off in productivity, employees as well as entrepreneurs started to relocate south to areas such as Florida and Texas. New contracts for single-family homes in Charlotte County were up 41% in August compared to this time last year. Single family homes are the “crème de la crème” vs condos and townhomes because most feel it is not only easier to social distance in a house, but weren’t quite ready to give up homeownership and downsize into a condominium.
Also, a booming housing market means more new homeowners – and a higher demand for new appliances such as refrigerators, dishwashers, washers and dryers. With more people staying at home and cooking, appliances are getting much more use requiring replacement, thus adding to manufacturers being backlogged to the end of the year. This pandemic has created a perfect storm for those looking to escape the high cost of urban living and unwittingly finding there are tax advantages and low mortgage rates to be enjoyed in areas with more desirable climates. According to the latest trends, many of Florida’s gulf coast towns and cities top the list as the choice of many seeking a better quality of life.One of those being our town of Punta Gorda. Punta Gorda is what so many people are looking for, a laid-back community where residents know one another, engage with one another and enjoy life together in a relaxed, harbor-side destination-the ideal getaway from the hustle and bustle of big city living. As always, we are here to answer any of your real estate questions and if you feel now is your time to make the lifestyle change you’ve been putting off, we’d be happy to show you our piece of paradise.
-Gary Cardillo
Restaurants were packed; sports bars were getting ready for college basketball’s March Madness and people were shopping and enjoying life “as usual.” Then came news out of China of a Coronavirus and since then the world has been in turmoil, or so it seems.
So what have we learned from our experiences? Apparently, not much! Instead of looking back to how we overcame Polio, SARS, Ebola, H1N1 (Swine Flu), Aids and Influenza, we have driven ourselves into a panic that is being heightened by the media and the emotional roller coaster inherent in the stock market.
Writer and philosopher George Santayana wrote in his book, Reason in Common Sense, The Life of Reason, “Those who cannot remember the past are condemned to repeat it.” You would think our past experiences would have enhanced our coping mechanisms, but the example we are setting for this next generation is that of panic and hoarding, instead of seeing the opportunities afforded in challenging times and taking advantage of them.
If you were to speak with the likes of Rich Dad, Poor Dad writer, and Entrepreneur Robert Kiyosaki and Warren Buffet, they will both tell you the times we are presently going through are the times that savvy investors wait for and then jump back into the market.
In speaking with Faiza Kedir, Director, Business Development Financial Advisor of the nationally recognized Private Wealth Asset Management company of Lansberg Bennet, she stressed how they are a non-commission based fiduciary, whose sole focus is protecting their client’s investments.
As consumers, we are always in the market looking for good buys and now we are seeing sellers reacting to the market and making price reductions in their list prices.
While most people would like to talk about themselves, Gary and Gail have always put their clients first, and their diverse backgrounds have provided their clients an unparalleled level of service and knowledge throughout the past years.