# Downside of Florida real estate? **URL:** \ **Category:** Factual Questions\ **Created:** [January 27, 2012, 4:20pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870 "2012-01-27T16:20:06Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![pseudotriton\_ruber\_ruber](https://avatars.discourse-cdn.com/v4/letter/p/a9a28c/32.png) [@pseudotriton\_ruber\_ruber](https://boards.straightdope.com/u/pseudotriton_ruber_ruber)\ **Post date:** [January 27, 2012, 4:20pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/1 "2012-01-27T16:20:06Z")
Past few winters, I’ve scouted property in Florida, thinking of living there at least half the year, and I’ve spent time in Fort Myers, Tampa, Sarasota, and Miami, looking at houses and condos. The places I’ve seen look pretty comfortable, the real estate market seems to be steadily affordable, and mortgage rates are very low. I’m tempted, but I’m also wondering–what’s the catch? Is this anything other than a buyer’s market? Are there buyers recently who have discovered that the cheap real estate they’ve bought has plunged further in value? Have people bought into condos only to find that the building has gone bellyup, or that their maintenance has skyrocketed to compensate for all the units that have been foreclosed on? Have entire neighborhoods turned into ghost towns? I’m looking and I see very little but opportunity, especially for someone looking to retire eventually (3-5 years) to a warm climate, but I wonder what I’m not seeing (and certainly not hearing about from the real estate agents taking me around to look at properties.) ---
**Author:** ![Chessic\_Sense](https://avatars.discourse-cdn.com/v4/letter/c/7c8e57/32.png) [@Chessic\_Sense](https://boards.straightdope.com/u/Chessic_Sense)\ **Post date:** [January 27, 2012, 4:31pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/2 "2012-01-27T16:31:14Z")
Assuming you actually want to live in the house, it’s not a bad deal. But if you’re buying in order to profit from it…wait a few years. Like, 5. ---
**Author:** ![Bambi\_Hassenpfeffer](https://avatars.discourse-cdn.com/v4/letter/b/bbe5ce/32.png) [@Bambi\_Hassenpfeffer](https://boards.straightdope.com/u/Bambi_Hassenpfeffer)\ **Post date:** [January 27, 2012, 4:39pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/3 "2012-01-27T16:39:46Z")
> [@pseudotriton\_ruber\_ruber](#): > > Is this anything other than a buyer’s market? Are there buyers recently who have discovered that the cheap real estate they’ve bought has plunged further in value? Have people bought into condos only to find that the building has gone bellyup, or that their maintenance has skyrocketed to compensate for all the units that have been foreclosed on? Have entire neighborhoods turned into ghost towns? All of this. It’s not as bad in Tampa Bay and Miami because the economies here have weathered the recession (and the housing collapse) better, but it’s been worse in SW Florida (Like Ft Myers and Sarasota). At least, that’s my impression based on living here all but three years of my life. I have no cites, but local news certainly gives that feeling. ---
**Author:** ![Bear\_Nenno](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/bear_nenno/32/3358_2.png) [@Bear\_Nenno](https://boards.straightdope.com/u/Bear_Nenno)\ **Post date:** [January 27, 2012, 6:23pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/4 "2012-01-27T18:23:56Z")
Be careful of Chinese drywall too. ---
**Author:** ![Kimmy\_Gibbler](https://avatars.discourse-cdn.com/v4/letter/k/bbe5ce/32.png) [@Kimmy\_Gibbler](https://boards.straightdope.com/u/Kimmy_Gibbler)\ **Post date:** [January 27, 2012, 6:37pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/5 "2012-01-27T18:37:19Z")
> [@Bambi\_Hassenpfeffer](#): > > All of this. It’s not as bad in Tampa Bay and Miami because the economies here have weathered the recession (and the housing collapse) better, but it’s been worse in SW Florida (Like Ft Myers and Sarasota). > > At least, that’s my impression based on living here all but three years of my life. I have no cites, but local news certainly gives that feeling. This accords with my impression as well. Although I am biased, having grown up in Palm Beach County. South Florida might be a good choice; West Palm Beach and Delray seem to be doing well (neither is a boomtown, but they haven’t been hit as hard as the more far-flung areas like PSL or Palm Bay (I know that neither of these are considered South Florida)). Boca or Fort Lauderdale/Broward County are also fine communities. Tampa is a pit, though. ---
**Author:** ![Lanzy](https://avatars.discourse-cdn.com/v4/letter/l/74df32/32.png) [@Lanzy](https://boards.straightdope.com/u/Lanzy)\ **Post date:** [January 27, 2012, 7:07pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/6 "2012-01-27T19:07:39Z")
I live in FL and I would hazard a guess that condos on the beach are as empty as they are going to get, so fees are probably pretty stable. Prices are really low right now. ---
**Author:** ![Dogzilla](https://avatars.discourse-cdn.com/v4/letter/d/e480ec/32.png) [@Dogzilla](https://boards.straightdope.com/u/Dogzilla)\ **Post date:** [January 27, 2012, 8:24pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/7 "2012-01-27T20:24:25Z")
The only catch I can think of is the matter of acquiring homeowners’ insurance. There is only one private company – State Farm – that writes HO policies in this state, and I don’t even know if they still write new policies or if they have pulled back to only servicing that which they’ve underwritten already. Your only option is the high-risk State insurance, for which the rates are ridiculous. Be sure to get the extra flood rider and the hurricane rider, as neither are covered in a standard HO policy in this state. As for home values, I look up and down the street and see no abandoned homes. There is one empty house, but my neighbor owns it and she keeps it up so her kids and grandkids have a place to stay when they come to visit her. She’s got her own guest house down the street! In North Florida, at least, the market seems somewhat stable. I wouldn’t try to start a business, like opening a new restaurant, or anything, but to buy a house and live here part time? No sweat. Consider the Panhandle: you get more for your money, insurance and taxes are a smidge lower than South Florida, and the beaches are just as lovely. I moved to this state in 1991. At that time, I was told that roughly 1,000 people move into Florida every year. AFAIK, that figure has not changed. There must not be _much_ of a catch, 'cause if there is, I’m not seeing one. ---
**Author:** ![Bambi\_Hassenpfeffer](https://avatars.discourse-cdn.com/v4/letter/b/bbe5ce/32.png) [@Bambi\_Hassenpfeffer](https://boards.straightdope.com/u/Bambi_Hassenpfeffer)\ **Post date:** [January 28, 2012, 4:27am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/8 "2012-01-28T04:27:45Z")
> [@Dogzilla](#): > > I moved to this state in 1991. At that time, I was told that roughly 1,000 people move into Florida every year. AFAIK, that figure has not changed. There must not be _much_ of a catch, 'cause if there is, I’m not seeing one. According to the [Census](http://www.census.gov/prod/2006pubs/p25-1135.pdf) (PDF) from 2000-2004, it was approx 190,000 net migration to Florida from other states every year. The 2010 version of this report doesn’t appear to be available yet, but AFAICT it hasn’t fallen too far. ---
**Author:** ![Xema](https://avatars.discourse-cdn.com/v4/letter/x/9de053/32.png) [@Xema](https://boards.straightdope.com/u/Xema)\ **Post date:** [January 28, 2012, 5:08am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/9 "2012-01-28T05:08:52Z")
> [@Dogzilla](#): > > I was told that roughly 1,000 people move into Florida every year. I was going to say that it may be closer to 1000 per day than to 1000 per year. Bambi H. has supplied the data - and at 190k/year, that would be correct. ---
**Author:** ![handsomeharry](https://avatars.discourse-cdn.com/v4/letter/h/e9c0ed/32.png) [@handsomeharry](https://boards.straightdope.com/u/handsomeharry)\ **Post date:** [January 30, 2012, 12:45am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/10 "2012-01-30T00:45:38Z")
All I know is that there REALLY ARE 4" COCKROACHES IN FLORIDA! hh ---
**Author:** ![Terry\_Kennedy](https://avatars.discourse-cdn.com/v4/letter/t/c57346/32.png) [@Terry\_Kennedy](https://boards.straightdope.com/u/Terry_Kennedy)\ **Post date:** [January 30, 2012, 2:57am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/11 "2012-01-30T02:57:25Z")
> [@Bambi\_Hassenpfeffer](#): > > …it’s been worse in SW Florida (Like Ft Myers and Sarasota). This reminds me of a YouTube video: [Dreams for Sale: Lehigh Acres](http://youtu.be/OcrKdWcxS8c) ---
**Author:** ![Bambi\_Hassenpfeffer](https://avatars.discourse-cdn.com/v4/letter/b/bbe5ce/32.png) [@Bambi\_Hassenpfeffer](https://boards.straightdope.com/u/Bambi_Hassenpfeffer)\ **Post date:** [January 30, 2012, 3:41am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/12 "2012-01-30T03:41:34Z")
> [@handsomeharry](#): > > All I know is that there REALLY ARE 4" COCKROACHES IN FLORIDA! So? Some places have scorpions and centipedes. Others have numerous venomous spiders. Other places have even worse. I’ll take the occasional giant cockroach (even if they do fly all around at night). ---
**Author:** ![Ludovic](https://avatars.discourse-cdn.com/v4/letter/l/7ab992/32.png) [@Ludovic](https://boards.straightdope.com/u/Ludovic)\ **Post date:** [January 30, 2012, 4:07am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/13 "2012-01-30T04:07:39Z")
I’ll take cockroaches over what happened when I was sleeping in a converted utility room for a year or so (in Sarasota). The 6" dryer outlet pipe was still there, hanging out in midspace…wait, actually it was hanging out about 3 inches from ground level on the outside. Frogs couldn’t resist it. During the night. Did I mention I also slept on the floor? ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [January 30, 2012, 4:22am UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/14 "2012-01-30T04:22:57Z")
> [@Dogzilla](#): > > The only catch I can think of is the matter of acquiring homeowners’ insurance. There is only one private company – State Farm – that writes HO policies in this state… Eh? That’s not true. Private carriers currently offering existing-construction homeowners’ policies in Florida include Tower Hill, GEICO, Security First, American Home, Sunshine State, Fidelity, Florida Peninsula, St. Johns, Southern Fidelity, Liberty Mutual, Auto Club, United P & C, Universal P & C… ---
**Author:** ![pseudotriton\_ruber\_ruber](https://avatars.discourse-cdn.com/v4/letter/p/a9a28c/32.png) [@pseudotriton\_ruber\_ruber](https://boards.straightdope.com/u/pseudotriton_ruber_ruber)\ **Post date:** [January 30, 2012, 12:53pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/15 "2012-01-30T12:53:07Z")
So what am I looking here in terms of serious issues? What are my safeguards against 1. buying into an area that’s about to go under and suffer abandonment? 2. chinese drywall (whatever that is–flimsy construction?) 3. cockroaches (I’ve lived in NYC all my life, I think I’ve dealt with roaches) 4. ??? So far, sounds like a buyer’s market to me… ---
**Author:** ![carlb](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carlb/32/5930_2.png) [@carlb](https://boards.straightdope.com/u/carlb)\ **Post date:** [January 30, 2012, 2:22pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/16 "2012-01-30T14:22:34Z")
> [@pseudotriton\_ruber\_ruber](#): > > So what am I looking here in terms of serious issues? What are my safeguards against > > 1. buying into an area that’s about to go under and suffer abandonment? > 2. chinese drywall (whatever that is–flimsy construction?) > 3. cockroaches (I’ve lived in NYC all my life, I think I’ve dealt with roaches) > 4. ??? > > So far, sounds like a buyer’s market to me… 1. Best I could suggest would be finding a really good real estate agent. Anyone who’s been in the business a while in that area should have a good feel for trends and changing neighborhoods. 2. The Chinese drywall issue is a relatively recent one, and it looks like the matter is somewhat nebulous. The Florida Dept. of Health has some info [here](http://www.doh.state.fl.us/environment/community/indoor-air/drywall.html) (scroll down the page a bit to the section on drywall). It looks like the issue didn’t crop up until 2006 or so. 3. I haven’t really had any problems with the Palmetto bugs. Maybe one or two per year actually get into the house, and a few more than that get in the garage. No big deal, really. 4. Homeowner’s insurance is very location dependent (last I checked). After the 2004 hurricane season the majors just started pulling out of certain regions. We live on the East coast, near Cocoa Beach, and State Farm drew a line about a mile inland from the Indian River and just pulled out of the area between that line and the coast. We’re with the state program now, and while insurance is expensive, it doesn’t seem that much more expensive than when we were with State Farm. There is a lot of cheap real estate down here. If I were buying I would be careful of a few things: [ul] [li]How long has the property been vacant (if it is)? If it’s been vacant for a while, it may or may not have been well maintained. Might need a little more work after move-in than you would expect.[/li][li]Is it a foreclosure or short sale? My in-laws have been looking at properties down here, and the buying process for these kinds of homes just seems much, much more complicated than a standard sale. I’m sure a good agent can clue you in to the details.[/li][li]What’s the history of the neighborhood during the last few years’ storms? Is the ground (relatively) high enough that wind damage is the only concern, or is the property low enough or near enough a body of water that flooding is a real concern?[/ul][/li] They’ve been calling the stretch of the east coast between Jacksonville and West Palm Beach the “Repo Riviera” for a couple of ears now. It’s even a bit worse in my neck of the woods since Kennedy Space Center has laid off so many people. There are some very, very low home prices around here. ---
**Author:** ![Dogzilla](https://avatars.discourse-cdn.com/v4/letter/d/e480ec/32.png) [@Dogzilla](https://boards.straightdope.com/u/Dogzilla)\ **Post date:** [January 30, 2012, 5:31pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/17 "2012-01-30T17:31:11Z")
> [@Xema](#): > > I was going to say that it may be closer to 1000 per day than to 1000 per year. > > Bambi H. has supplied the data - and at 190k/year, that would be correct. :smack: I meant 1,000 per _day_. But I typed per _year_. ---
**Author:** ![Dogzilla](https://avatars.discourse-cdn.com/v4/letter/d/e480ec/32.png) [@Dogzilla](https://boards.straightdope.com/u/Dogzilla)\ **Post date:** [January 30, 2012, 5:33pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/18 "2012-01-30T17:33:12Z")
> [@Really\_Not\_All\_That\_Bright](#): > > Eh? That’s not true. Private carriers currently offering existing-construction homeowners’ policies in Florida include Tower Hill, GEICO, Security First, American Home, Sunshine State, Fidelity, Florida Peninsula, St. Johns, Southern Fidelity, Liberty Mutual, Auto Club, United P & C, Universal P & C… Interesting. When State Farm was threatening to pull out of Florida, I started making calls and scrambling to find HO insurance. There are at least three in your list above who told me “Sorry, we’re not writing any new policies in Florida.” I gave up after about a half-dozen phone calls so I did not call every single one you listed. ---
**Author:** ![Really\_Not\_All\_That\_Bright](https://avatars.discourse-cdn.com/v4/letter/r/e8c25b/32.png) [@Really\_Not\_All\_That\_Bright](https://boards.straightdope.com/u/Really_Not_All_That_Bright)\ **Post date:** [January 30, 2012, 5:49pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/19 "2012-01-30T17:49:02Z")
IIRC, everyone briefly put a moratorium on new policies after T.S. Fay. State Farm even told my wife they didn’t insure homes in our area 6 weeks _after_ they wrote us a policy. [You can read about it here](http://boards.straightdope.com/sdmb/showthread.php?t=482653&highlight=%22state+farm%22). Eventually, the DFS told all the insurers that if they stopped writing homeowners’ policies they’d have to stop writing other ones too and all was well. [ETA: The state OIR now offers a handy online tool that lets you shop for coverage.](http://www.floir.com/choices/) ---
**Author:** ![John\_DiFool](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_difool/32/19543_2.png) [@John\_DiFool](https://boards.straightdope.com/u/John_DiFool)\ **Post date:** [January 30, 2012, 5:51pm UTC](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870/20 "2012-01-30T17:51:20Z")
Only real downside I can see is that a big chunk of it will be underwater in 50 years. Just sayin’. [Next page](https://boards.straightdope.com/t/downside-of-florida-real-estate/610870.md?page=2)