Owning a Miami Condo has different ongoing costs than in many other states due to a variety of factors including higher insurance rates, typically more amenities provided in Miami condos and property tax rates. Below is a brief explanation of each:
- Property Tax. Florida residents have the advantage of not having to pay any income tax at all. But in the end the governments need to collect their taxes from somewhere, and property taxes is where they get it from in the form of approximately 2% of the assessed value of the condo per year. The county assesses the value once per year. The easiest way for you to estimate yearly taxes on your future Miami condo is to simply take your purchase price and multiply by 2%.
If you are a U.S. Resident or Citizen and also a Florida resident, you can get $50,000 or more in Homestead tax savings as well as a cap of 3% per year on any property tax increase due to either higher millage rates or higher property values.
- Association Fees. There is always a price to pay for being in paradise, and part of this cost comes in the form of association fees. After all, if you are in one of the typical Miami condos with 24/7 concierge, pool, jazuzzi, gym and valet, those services don’t come for free! On top of that, insurance is a bit higher for Miami condos than condos in many other parts of the U.S. due to hurricane and flood insurance. And the Miami condo building master insurance is included in condo association fees. All that translates to about 50-65 cents per square foot per month for your association fees.
Interior Contents Insurance (A.K.A. H06 Insurance). The master condo building insurance policy already covers the structure, exterior and common areas of the building, so all you have to worry about is the interior contents and finishes, including drywall, flooring, fixtures, etc. The average cost for this is $400-$700 per year. Of course it could be higher if you have your Miami condo built-out by the most fashionable interior designer in town.
Utilities. Typically water, sewer and trash are included in your condo association fees. Sometimes perks like cable and internet access are also included. Electricity is almost always your cost. The good news is that you don’t have much in the way of heating bills in the Miami winter
I hope you found this useful. Feel free to leave comments with questions on the costs of owning a Miami condo, and I will be happy to respond.
Sep Niakan is broker/owner of HB Roswell Realty, a full service Miami real estate brokerage, and CondoBlackBook.com which is Miami’s leading online directory of Miami condos for sale.