Is Florida becoming the new California?
In the past year, Florida has seen a massive migration from California. If you have met one person from California, you have probably met ten more. Californians are moving their companies, their families and their friends to Florida at a rapid pace.
The pandemic-era rise of remote work has caused many California based companies to re-evaluate their need to be tethered to traditional business hubs like Silicon Valley and Los Angeles. Many business owners in the technology and financial sectors are exploring their options to increase profitability and provide lifestyle options to attract a quality workforce. Florida offers a lower cost of living, asset protection, and beneficial corporate and personal tax laws.
Cost of Living
The overall cost of living in California is 149.9% on the national cost of living index, meaning it is essentially 49.9% more expensive than the national average. Compare that to Florida’s cost of living index of 102% (only 2% more than the national average).
The biggest factor impacting cost of living is housing, making up 30% of the index. In this HOT real estate market, finding a good deal is harder than you can imagine. However, if you are making the trek from California to Florida, the entire real estate market appears to be a “good deal.”
The median home price in California was $813,980 as reported in April 2021 according to the California Association of Realtors, 139% more than the national average! Many of the more popular cities are experiencing median home prices over $1,000,000. Compare those prices to Florida’s median sales price of $314,900 for a single family home and you can understand one of the many factors causing the migration from California to Florida.
Luxury home buyers are finding value in Florida’s real estate. Many of Florida’s most popular waterfront cities offer opulent homes on the water starting in the low million dollar range. You would be hard pressed to find more than a bungalow for the same value in California’s top cities.
The tax benefit and asset protection is one of the major factors driving Californians across the country. Below are some of the details on corporate and business tax savings Californians are experiencing from relocation to Florida.
State Income Tax
Many of California’s wealthy are making the move for income tax. Florida’s “no state income tax” popularity is very appealing compared to California’s 10%.
With the 8.25% sales tax being reduced to only 6% in Florida, many Californians are seeing the beaches of Florida more appealing and inexpensive versus their current cost of living. This translates into an average per person annual savings of almost $2,000.
Protection of Assets
Asset protection is one of the top reasons more businesses and homeowners are looking at Florida’s real estate. From ownership to creditor judgements, you are protected in Florida.
Homestead Creditor Protection
Florida’s unique Homestead creditor protects a resident’s primary home from levy due to an execution by their judgment creditors. The Florida Constitution states that a judgment creditor cannot force the sale of your home to satisfy the creditor’s money judgment.
Tenants by the entirety is a special form of joint ownership of real estate recognized in Florida but not in California. This type of survivorship allows ownership to automatically pass to the surviving owner.
Protection of the cash value of life insurance and bankruptcy
Cash value life insurance policies also offer the benefit of protection against creditor claims. This protection also covers a debtor once they have filed bankruptcy. Florida has certain exemption laws which allows certain assets to be immune to the attachment to satisfy debts when a creditor obtains a judgment. Florida has unlimited protection on cash value of inheritance, whereas California only protects up to $15,650.
IRAs and annuities protection
California law allows IRAs to be more vulnerable to judgement creditors. However, in Florida your pensions, 401k plans, IRAs, and other tax deferred retirement assets are protected from creditors pursuant to Section 222.21 of Florida Statutes. All forms of tax deferred retirement plans are protected.
Compared to California, Florida offers great value and asset protection for the distinguished consumer. When deciding to make a move of this caliber, there are many factors involved, especially if you are considering moving your entire company’s home base.
We understand a move of this magnitude has many considerations. It is important to align yourself and your business with local experts to ensure all the details are considered. When you partner with YES-Homes of Keller Williams Realty, you are partnering with local experts in the residential and commercial real estate market in the Tampa Bay area. Our team has been established in the area for over 20 years and understands the ins and outs of the process. With connections to the most established Commercial Realtors, corporate and tax attorneys, financial advisors and relocation firms, we can assist you with your move to the area. You can feel confident that our team will protect your privacy and your best interest. From designers to doctors, our preferred partner connections will help you settle into your new Florida community with ease.
Why not move to a coastal state with some of the most world-renowned beaches and places to live when it is significantly more affordable and your money is better protected? It is time to come enjoy a bit of our southern comfort lifestyle. Contact us directly for more information. (727)742-7939