The purchase price is only part of the budget. Before choosing a Florida home or condo, review property taxes, insurance, association dues, utilities and maintenance.
There is no single ownership-cost figure for Miami-Dade, Broward and Palm Beach counties. Your budget depends on the property, its location and how you plan to use it.
Property Taxes
Do not assume the seller’s tax bill will become yours. A change in ownership can trigger reassessment, generally as of January 1 of the following year. The seller’s exemptions and assessment-cap benefits do not establish the buyer’s future tax bill.
Property taxes depend on taxable value and local rates. The bill may also include non-ad valorem assessments — charges that are not calculated directly from the property’s value.
If the home will be your permanent residence and you meet the requirements, check your eligibility for a Homestead Exemption.
Before buying, request a post-purchase tax estimate from the appropriate county Property Appraiser and review any additional assessments on the tax bill.
Homeowners and Flood Insurance
Obtain an insurance quote for the specific address before your contractual inspection period ends. Compare coverage, exclusions and deductibles, as well as the annual premium.
For a condo, review the association’s insurance policy alongside the coverage needed for your own unit.
Standard homeowners insurance generally excludes flood damage. Review flood insurance separately, including any lender requirements.
A separate hurricane deductible may apply. This is your share of a covered loss, rather than an annual insurance charge.
HOA and Condo Fees
Compare both the amount of the dues and the services included. Request the current association budget, financial statements, rules and information about additional charges.
Ask whether the property has master-association dues, mandatory club membership or other recurring obligations.
For condos, review reserves, building inspection reports and any applicable Structural Integrity Reserve Study, or SIRS. This study helps plan funding for future repairs and replacement of specified building components.
Also ask about approved or proposed special assessments and planned projects whose funding has not yet been determined.
Utilities and Maintenance
Depending on the property, your budget may include:
Electricity, water and sewer.
Internet and waste collection.
Landscaping and pool care.
Pest control.
Air-conditioning service.
Minor repairs and equipment replacement.
Check which services are already included in association dues to avoid counting them twice.
Keep a separate reserve for future repairs. For an investment property, also allow for management, rental preparation and periods without a tenant. Review the rental rules for the specific building, community and city.
An Illustrative Annual Budget
The following is a hypothetical example for a house. These figures are not Florida market averages, insurance quotes or estimates for a particular property.
Property tax and tax-bill assessments: $9,000 per year
Homeowners insurance: $4,800 per year
Separate flood insurance: $1,200 per year
HOA dues: $3,600 per year
Utilities: $3,000 per year
Maintenance and repair reserve: $2,400 per year
Total: $24,000 per year, or $2,000 per month.
This example excludes mortgage payments, closing costs, special assessments, major work beyond the reserve and rental management.
A repair reserve represents planned savings and may not be spent every year. If your mortgage payment already includes property taxes and insurance through escrow, do not add those expenses again.
What to Review Before Buying
Before making your decision, gather:
A post-purchase property tax estimate and details of additional assessments.
Property-specific insurance quotes, coverage and deductibles.
Association dues and a list of included services.
Association budgets, reserves, inspection reports and any applicable SIRS.
Information about approved or proposed special assessments and planned projects.
Inspection findings and preliminary maintenance estimates.
Find Your South Florida Property
Planning to buy a home or condo? You can browse properties in South Florida on my website and explore options that match your preferences.
To discuss the ownership costs of a specific property, message me on WhatsApp with the listing link and your questions. I can help you gather available information and identify what to clarify before buying.
Svitlana Milovanova
Florida-Licensed Real Estate Agent and Business Broker
LoKation Real Estate
Miami-Dade • Broward • Palm Beach
English • Russian • Ukrainian
+1 (561) 403-9941 | lana@usarealty.org
This article provides general information. Confirm property-specific taxes, insurance coverage and contractual obligations with the appropriate professionals.