I have been speaking to many people recently who have different perspectives on the economy.  Due to state budget cuts, I have a friend who is concerned about his job as a school teacher.  The school is rumored to be making some cuts and he fears he may be one of them.  My friend lives in New Jersey on the outskirts of New York City.  He bought his apartment he is living in for $210,000 and if he wanted to sell it today, could probably get $225,000.  This apartment is nothing fancy.  It’s an older building, has 1 bedroom 1 bathroom and 750 square feet.  (Don’t make fun!  Those are prices we deal with in Jersey!)  That being said, my friend is also only 3 years from retirement.  On his New Jersey condo, he pays annual real estate taxes of nearly $4,000 and HOA dues of $215 per month.  Keep in mind there are ZERO amenities in the complex so the $215 goes towards structure insurance, budget, and maintenance.

Due to the fact that he is just a few years from retirement, I advised him to consider relocating to Florida.  He will not be penalized for leaving as he is already tenured so a move to Florida is realistic.  Although teachers make about 20% less in Florida as they do in New Jersey, the real estate prices have gotten so low that the pay difference almost doesn’t count. 

I introduced him to Cape Coral on his most recent trip to Florida, the neighboring city to Ft. Myers, where I live.  I took him to a foreclosure home that I had access to in the Southwest quadrant of Cape Coral which seems to be its most desirable.  The home will cost $100,000 and you get 3 bedrooms, 2 full bathrooms and over 1,500 square feet.  Not only that, but you own the land your house sits on and the home has an attached 2 car garage and a screened in back patio area WITH A POOL! 

Getting back to his Jersey apartment, he was paying about $1,600 for his PITI.  With a Florida home at $100,000, his total monthly payment of PITI will be about $800 per month, HALF of what he was paying.  Additionally, he is mere steps from entertainment, relaxation, boating, fishing, and the goods of life. 

Relocation has to play a part in some people’s lives.  In times like today when most people are trying to cut cost of living, there is not better place to do it than sunny Florida.  If you can bare the 85 degree humid heat in the summer times, real estate prices are historically low, rates are silly low, and paradise is at your fingertips.  So whether or not you are trying to relocate or purchase an investment property, give us a call so we can help.

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