Everyone is moving to Miami. Should you?March 12, 2021
There’s a lot of activity picking up in the Miami real estate market, and that’s for good reason.
Over the last ten years, Miami real estate has appreciated by almost 100% (96.54%, to be exact). That puts Miami in the top 10% nationally in terms of real estate appreciation, and there’s no signs of it slowing down.
They’ve taken a limited-restrictions approach to the coronavirus that’s allowed their economy to stay open. Since the start of the pandemic, the median real estate value in Miami went from $360k to almost $400k today.
And the taxes can’t be beat.
To give you an idea, here’s a quick comparison chart with California:
- In Florida, you have no income tax at all. In California, there’s a top tax rate of 13.3% for the highest earners, equating to an almost ~60% marginal tax rate in some localities. In New York, it’s 8.82%, and your tax rate could potentially get as high as ~62%.
- Sales tax is 1.25% lower in Florida.
- Gas prices are 30% lower in Florida.
If you’re still not sold, The Tax Foundation shows that, because of decreased purchasing power, $100 in California buys you only $87 worth of goods (and it’s even worse in places like NY, where $100 is more like $86).
Meanwhile, in Florida, $100 will buy you $100 worth of goods.
So not only are you paying considerably higher taxes in California and New York, but your dollar doesn’t go anywhere near as far. It’s like there’s an invisible extra purchasing power tax of 13-15%.
As you can see, you can buy a much bigger, swankier house in Miami than you could in LA — but we’ve really only touched on just how big the savings are.
Let’s run the numbers in some major cities across the US to give you a better idea.
In New York:
You’re going to end up paying roughly $25k in state income tax, and your take home pay will be a little under $250k if you make $400k.
The picture is a little bit worse. You’ll end up paying $35k in state taxes, and your take home pay will only be $238k.
Meanwhile, in Florida:
You’re not paying anything in state income tax, and your take-home pay is anywhere from $25-50k higher than in New York and California, for a total of almost $275k.
With all those extra savings, you could buy a boat. And if you live in Florida, you’ll have no trouble finding places to sail. From Haulover Sandbar to Coconut Grove — and, of course, Miami Beach, Miami has fantastic options for beachgoers and sailors alike.
Miami is also jam-packed with fantastic restaurants, like the one-Michellin-starred NYC favorite Carbone, which just recently opened in South Beach, and many others.
For example, take a look at Elysee, a luxury boutique residential development near Edgewater. 3-6 bedroom units, anywhere from 2700 to 6600 square feet, with gorgeous views of the water.
Tack on the fact that Miami has an international airport with great deals on flights to South America, the Caribbean, and the EU, and you have a killer recipe for growth.
As some of you know, I’m originally from Brazil but living between California and Florida for over 20 years , and I’m a licensed realtor in both California and Florida.
If you are thinking of moving to Florida, please let us know so we can help you if you are looking to buy or rent.
Wilson Chueire – Chueire Group