The Truth About Taxes & Insurance in Bonita Springs Florida
“But I will pay more in real estate taxes and insurance in Florida than I do in upstate New York … “
That was a comment I received on a Facebook post that showed every state with the income tax rates. Florida income tax rate is one of the lowest in the nation, if you weren’t aware.
Read also: Bonita Springs Florida Tax Haven High Net Worth Residents
At any rate, my first thought was to qualify that comment/response with data because, well, I would want to make sure we are comparing apples to apples. So here are my thoughts, to pass on to you, the potential real estate home buyer in Bonita Springs or Estero. You, as a consumer, could read things like that not extrapolate a few factors that we don’t know such as:
Value, for example. Is the value of the home in New York $400,000 and the home in Bonita Springs, Florida $400,000. That would be the apples to apples with regard to value.
CDD – Is the property located in a community development district? How about a water management district with special assessments like San Carlos Estates. Those types of tax districts can add hundreds, sometimes thousands of dollars to a tax bill.
County taxes only or is one of the homes in a city/county tax situation? Paseo in Fort Myers, for example has both city and county taxes in addition to a CDD. The trifecta!
If the property in NY enjoyed specific exemptions that don’t transfer or convey to Florida. Widow/Widower, disability, etc. That’s not apple/apples in tax basis, either.
As far as insurance … there are so many variables I can’t even list them all so let’s just hit a few larger items.
The age of the home will determine insurance cost factors. Many older homes require a four point inspection so the insurance company can gauge their risk. Older homes do not have a lot of the recent storm codes such as window coverings that could lower the tax rate.
The location of the home. If it’s by a canal, the bay or the Gulf of Mexico there could be increased premiums for hazards such as wind and water intrusion. I know because I live in Bonita Farms a few lots from the river in an older home built in 1983. The canal is my back yard and the insurance company ranks that risk with additional premium charges.
The elevation of the home. Older homes are often lower so they are in lower flood plains. We have a few flood plains here so the charges for flood insurance vary quite a bit.
Is there more than one structure on the property. Two structures, two policies. If they need flood insurance, two structures, two policies for home owners and two policies for flood.
Honestly, an experience real estate agent can help you learn everything you need to know about a property before you even Docusign the contract. You can get ballpark prices on real estate property taxes and insurance, both homeowners and flood insurance prior to moving forward. Heck, our property appraiser actually takes phone calls and can let you know +/- what your first tax bill be if you are buying new construction that has never been taxed before.
Anywho, I thought that I would share my two cents about real estate taxes and home owner insurance to help home buyers.
If you’re looking for buyer representation call Chris or Angela at 239-273-7430.