Why Now is the Time to Buy a Second Home

For many, the lasting impact of the Great Recession of 2007-2009 has left memories of
losing a home or watching one’s neighbors or parents lose theirs. This in itself may be
enough to have you second-guessing a home purchase in uncertain economic times.
However, with super-low mortgage rates and better deals to be negotiated with sellers,
now is potentially a good time to wade into the market. A home is not just an
investment, but a place to live. If you’re considering moving to Florida or purchasing a
second home, Northeast Florida has a ton to offer! This blog will discuss some of the
advantages of owning a home in Jacksonville, Florida, especially in our stunning beach
communities.

Low Interest Rates

In light of the economic strain due to COVID-19, the Federal Reserve is slashing
interest rates a full percentage point to zero and is giving banks more lending power. As
a result, potential homebuyers have the opportunity to secure an incredibly
advantageous home loan. Financial experts assume the reduced interest rate will
continue in efforts to ward off the economic dangers of the COVID-19 pandemic.

No Income and Estate Tax

While other states mandate an income tax between four and eight percent, Florida
residents pay none. The strength of Florida’s low tax burden comes from its lack of an
income tax, making them one of seven such states in the United States. Florida also
does not assess an estate tax, or an inheritance tax. In other states, families of
deceased loved ones are forced to pay taxes on their assets, including property. No
portion of what is willed to an individual goes to the state in Florida though.

Property Tax

Property tax percentages vary by county, but the average rate for the state is only .98%,
which is slightly lower than the national average. The average country tax rate for
Jacksonville Beach, Florida is .972%, Ponte Vedra, Florida is .969% and Jacksonville,
Florida is .972%. Property taxes in Florida are some of the highest in the country,
although there are several exemptions to try to lighten the load for many Floridians.
Some property tax exemptions include Homestead Exemptions, Widow(er) Exemptions,
Senior Citizen Exemptions, Blind Person Exemptions, Total and Permanent Disability
Exemptions, and Veterans Exemptions.

Recreation

Of course, saving money via low interest rates and tax exemptions is desirable, but
Northeast Florida real estate has several other alluring attributes. These include the
white sand beaches, turquoise blue water, championship golf courses, premier tennis
facilities, world renowned fishing spots, and remarkable recreational fields. All of which
you can find in or near Ponte Vedra, Florida, where we are based. Plus, the almost
year-round warm and sunny weather is hard to beat.

Potential Rental Income

If you’re looking for some additional income, one of the benefits of owning a second
home is that you can potentially rent it out and make enough money to cover the
house’s mortgage and expenses as well as have some profit left over for daily living
costs. Leasing the place out monthly with a long-term contract is definitely a financial
benefit of owning a second home. You could also take advantage of short-term rental
services like Airbnb and Vrbo to rent to vacationers and business travelers on a more
flexible daily, weekly or monthly basis. With Florida being a vacationer hot spot, you’re
sure to be fully booked if renting while you’re away is your desire.

Buying a home is one of the biggest financial transactions you’ll ever make, and one
that you need to time just right to get the best deal possible. Saltwater recreation,
resort-style amenities, tax-friendly incentives, potential rental income, and a luxurious
lifestyle all contribute to the steady increase in Jacksonville real estate investments. If
you’re ready to purchase or talk through owning a second home, we at Marsh Landing
Country Club Realty are experts in the area and here to help!

Contact us today at (904) 285-6514 or by visiting our website. We look forward to
serving you on your journey to home ownership.