There is no doubt that Florida attracts foreign and out-of-state buyers. Recently, there is a sudden flow of high income individuals scooping properties throughout the state. In fact, most of them are focusing on multi-million homes. The reason behind this trend is most likely due to the tax bill that was introduced last year. In fact, it drove the traffic to Florida where more people are making Florida their primary residency.
According to The Real Deal, the new tax bill limited the taxpayer’s ability to deduct their state and local tax from their federal taxable income. This means that individuals from high income tax state (Minnesota 9.85%, New York 8.82%, Connecticut 6.99% etc) will have a higher taxable income. Due to this, they are shifting their residency to states that has no income tax such as Alaska, Nevada, South Dakota, Texas, Washington and Florida.
In Florida, most of these high-net worth individual comes from New York City. The multi-million properties that they are snatching includes The Apogee which is an ultra-luxury condo located in Miami Beach. 5 condos were sold this year and average $2,989/sqft. In fact, buyers are offering close to the asking price. For example, unit 1604 at The Apogee was sold for $13.5M which is just a million short from the asking price of $14.5M. This goes the same to the ultra-high-end projects such as The Mansions at Acqualina that saw a burst of condo sales on their pre-construction project totaling up to $16M. This new wave of buyers are welcomed in Florida especially after a brief slow period in the real estate market.