Trust This: NY to Florida Savings Shift
1 big thing: Florida losing its luster New Yorkers thinking [...]
New Yorkers thinking of relocating to a Sunbelt state for better weather and more affordability might be in for a rude awakening as housing costs rise in popular southern markets.
Why it matters: New Yorkers’ steady southward migration in the last century has shaped Florida’s demographics and culture. Without the traditional financial incentive for moving, that era may be coming to a close.
By the numbers: Moving south—to Florida or, more recently, Texas—has long made sense to Manhattanites seeking a lower cost of living. Now, the numbers make a compelling case for staying put:
In 2023, people who moved to Miami, Austin, and Dallas saved almost 30% less compared to 2019. That’s about $37,000 in savings now vs. over $51,000 four years ago.
Inflation rates in these cities have started to catch up to those in New York, too—which also reduces the real purchasing power of these would-be expats.
Housing costs are peaking, too. In Manhattan, the last few years have seen a modest increase in rent and home prices. In Miami, housing costs have spiked almost 40%.
Is Texas the new Florida? New Yorkers have set their sights on Texas over Florida for a while now.
In years past, Florida was a magnet for those seeking to move south because of its sunny beaches and proximity to entertainment.
Texas’ popularity is a signal that people are selecting relocation destinations based on financial pragmatism instead of dream lifestyles.
Texas could be doomed to the same fate: Austin’s tech surge—fueled by an influx of Californians—is now starting to drive that Texas city over the affordability threshold.
Home prices in Dallas remain lower than in Austin, but its utility costs have risen over 50% since 2019.
The bottom line: New Yorkers eyeing properties in the South because they think they’ll save money should be aware that that financial trend is shifting. Increasing housing costs, rising inflation, and changes in the cost of living associated mean neither Florida nor Texas is a slam-dunk for savings.
The Florida condo market has been a hot commodity for homeowners and investors for decades. Thanks to increasing fees and other expenses, the market is showing signs of a rapid cooldown.
It’s just the condos: Sales of single-family homes in Florida are holding steady. On the other hand, condo listings linger—even as the rate of new condo listings continues to rise past historical averages.
What the numbers say:
Jacksonville and Miami are reporting condo prices down 7% and 3%, respectively, as of January 2024.
Sales of these condos are also declining—by 27% in Jacksonville and 9% in Miami.
Yes, but: Condo prices nationwide are on the rise.
The National Association of Realtors notes that the nationwide median sale price for existing homes was up nearly 6% from last year.
Condos in Florida are the exception to the rule.
What’s to blame:
Skyrocketing insurance premiums, thanks to the state’s regular, devastating hurricanes: In 2023, homeowner’s insurance in Florida spiked by about 40% (the highest rates in the US).
Exacting HOA rules and regulations that turn away buyers spooked by their overbearing approach.
Monthly maintenance fees: “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee,” says Juan Castro, a Redfin Premier agent in Orlando. “It’s causing buyers to rethink their plans.”
New safety regulations enacted in the wake of the Surfside tragedy are also contributing to higher HOA fees for condos and periodic assessments.
And making it harder to secure a mortgage. Sometimes, getting a mortgage for a single-family home is easier than a condo.
The bottom line: If you’re a Florida condo owner, buyer, seller, agent, or mortgage underwriter, get ready for a period of adjustment.
Regulatory changes and rising costs are introducing significant hurdles that sellers and buyers must navigate.
No matter who you’re speaking to, on either side of the contract, you’ll need to recalibrate your strategies to stay relevant.
In this week’s Masters Series, I sit down with Asad Ahmad, CPA with the FitBiz CPAs to discuss his beginnings with the Big CPA firms and his pivot to opening his own firm that has grown to a bullet-proof tax strategies and fractional CFO firm focused on real estate investors and entrepreneurs.
FBI reports cybercrime reports hit all-time high, and losses increase to $12.5 billion in 2023. ALTA
Jacksonville, Orlando, Tampa, and Miami are the 2nd, 3rd, 4th, and 6th hottest job markets in the U.S. WSJ
And, speaking of Miami, Apple has inked a lease for a new 45,000 square foot office in Coral Gables. Refresh Miami
U.S. average mortgage rates break the 7% barrier again. MPA Mag
The CFPB is considering a ban on lenders requiring borrowers to pay for a lender’s title insurance policy at closing. Bloomberg (gift link valid for 7 days only)
Can rehab loans replace hard money lenders? Bigger Pockets
Congress will consider a bill to require the current tri-merge credit report rather than a new bi-merge (two reports) plan that the Federal Housing Finance Agency is currently considering. The bi-merge is expected to generate competition among the three major credit bureaus, lowering this closing cost for borrowers. HousingWire
During last week’s severe thunderstorms that rolled through Orlando, the tallest live oak tree in our backyard was struck by a lightning bolt that hit the highest branch, traveled all the way down the tree, and then exited to the ground where it obliterated a poor bromeliad that was in its way.
We were watching “Below Deck” on Peacock when the strike blinked our power off, filled the room with intense white light, and a simultaneous thunderclap that shook us to our cores.
When the lights returned a second or two later, we had only a screensaver and no more “Below Deck.”
We also lost the two first-floor air conditioners, the cable modem, a network router, all backyard landscape lights, the irrigation pump, and the irrigation timer.
For days afterward, we were flipping tripped breakers and GFI’s.
For two evenings, our only Internet connections were through iPhones running on LTE cellular connections (the storm also took out our local 5G towers).
No television to bring us continuous images of bad news;
No bright screens to confuse our brains about whether it was day or night.
Less social media to remind us of everything everyone else is experiencing or distract us with cat/dog videos.
I got the best sleep those two evenings than I’d had in decades, or at least since I got my first iPhone.
We know that late-night screen time prevents a night of healthy sleep, but
It shouldn’t take a literal lightning bolt out of the blue to trigger a simple habit like turning off all the screens at least an hour before bedtime.
The next time a storm comes to town, I’ll cut power to the house, sit in the dark, and contemplate all the bad habits I’ve been resolving to break as the thunder rolls by.
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue! 👋
New Yorkers thinking of relocating to a Sunbelt state for better weather and more affordability might be in for a rude awakening as housing costs rise in popular southern markets.
Why it matters: New Yorkers’ steady southward migration in the last century has shaped Florida’s demographics and culture. Without the traditional financial incentive for moving, that era may be coming to a close.
By the numbers: Moving south—to Florida or, more recently, Texas—has long made sense to Manhattanites seeking a lower cost of living. Now, the numbers make a compelling case for staying put:
In 2023, people who moved to Miami, Austin, and Dallas saved almost 30% less compared to 2019. That’s about $37,000 in savings now vs. over $51,000 four years ago.
Inflation rates in these cities have started to catch up to those in New York, too—which also reduces the real purchasing power of these would-be expats.
Housing costs are peaking, too. In Manhattan, the last few years have seen a modest increase in rent and home prices. In Miami, housing costs have spiked almost 40%.
Is Texas the new Florida? New Yorkers have set their sights on Texas over Florida for a while now.
In years past, Florida was a magnet for those seeking to move south because of its sunny beaches and proximity to entertainment.
Texas’ popularity is a signal that people are selecting relocation destinations based on financial pragmatism instead of dream lifestyles.
Texas could be doomed to the same fate: Austin’s tech surge—fueled by an influx of Californians—is now starting to drive that Texas city over the affordability threshold.
Home prices in Dallas remain lower than in Austin, but its utility costs have risen over 50% since 2019.
The bottom line: New Yorkers eyeing properties in the South because they think they’ll save money should be aware that that financial trend is shifting. Increasing housing costs, rising inflation, and changes in the cost of living associated mean neither Florida nor Texas is a slam-dunk for savings.
The Florida condo market has been a hot commodity for homeowners and investors for decades. Thanks to increasing fees and other expenses, the market is showing signs of a rapid cooldown.
It’s just the condos: Sales of single-family homes in Florida are holding steady. On the other hand, condo listings linger—even as the rate of new condo listings continues to rise past historical averages.
What the numbers say:
Jacksonville and Miami are reporting condo prices down 7% and 3%, respectively, as of January 2024.
Sales of these condos are also declining—by 27% in Jacksonville and 9% in Miami.
Yes, but: Condo prices nationwide are on the rise.
The National Association of Realtors notes that the nationwide median sale price for existing homes was up nearly 6% from last year.
Condos in Florida are the exception to the rule.
What’s to blame:
Skyrocketing insurance premiums, thanks to the state’s regular, devastating hurricanes: In 2023, homeowner’s insurance in Florida spiked by about 40% (the highest rates in the US).
Exacting HOA rules and regulations that turn away buyers spooked by their overbearing approach.
Monthly maintenance fees: “Condos that used to have a $400 monthly maintenance fee may now have a $700 fee,” says Juan Castro, a Redfin Premier agent in Orlando. “It’s causing buyers to rethink their plans.”
New safety regulations enacted in the wake of the Surfside tragedy are also contributing to higher HOA fees for condos and periodic assessments.
And making it harder to secure a mortgage. Sometimes, getting a mortgage for a single-family home is easier than a condo.
The bottom line: If you’re a Florida condo owner, buyer, seller, agent, or mortgage underwriter, get ready for a period of adjustment.
Regulatory changes and rising costs are introducing significant hurdles that sellers and buyers must navigate.
No matter who you’re speaking to, on either side of the contract, you’ll need to recalibrate your strategies to stay relevant.
In this week’s Masters Series, I sit down with Asad Ahmad, CPA with the FitBiz CPAs to discuss his beginnings with the Big CPA firms and his pivot to opening his own firm that has grown to a bullet-proof tax strategies and fractional CFO firm focused on real estate investors and entrepreneurs.
FBI reports cybercrime reports hit all-time high, and losses increase to $12.5 billion in 2023. ALTA
Jacksonville, Orlando, Tampa, and Miami are the 2nd, 3rd, 4th, and 6th hottest job markets in the U.S. WSJ
And, speaking of Miami, Apple has inked a lease for a new 45,000 square foot office in Coral Gables. Refresh Miami
U.S. average mortgage rates break the 7% barrier again. MPA Mag
The CFPB is considering a ban on lenders requiring borrowers to pay for a lender’s title insurance policy at closing. Bloomberg (gift link valid for 7 days only)
Can rehab loans replace hard money lenders? Bigger Pockets
Congress will consider a bill to require the current tri-merge credit report rather than a new bi-merge (two reports) plan that the Federal Housing Finance Agency is currently considering. The bi-merge is expected to generate competition among the three major credit bureaus, lowering this closing cost for borrowers. HousingWire
During last week’s severe thunderstorms that rolled through Orlando, the tallest live oak tree in our backyard was struck by a lightning bolt that hit the highest branch, traveled all the way down the tree, and then exited to the ground where it obliterated a poor bromeliad that was in its way.
We were watching “Below Deck” on Peacock when the strike blinked our power off, filled the room with intense white light, and a simultaneous thunderclap that shook us to our cores.
When the lights returned a second or two later, we had only a screensaver and no more “Below Deck.”
We also lost the two first-floor air conditioners, the cable modem, a network router, all backyard landscape lights, the irrigation pump, and the irrigation timer.
For days afterward, we were flipping tripped breakers and GFI’s.
For two evenings, our only Internet connections were through iPhones running on LTE cellular connections (the storm also took out our local 5G towers).
No television to bring us continuous images of bad news;
No bright screens to confuse our brains about whether it was day or night.
Less social media to remind us of everything everyone else is experiencing or distract us with cat/dog videos.
I got the best sleep those two evenings than I’d had in decades, or at least since I got my first iPhone.
We know that late-night screen time prevents a night of healthy sleep, but
It shouldn’t take a literal lightning bolt out of the blue to trigger a simple habit like turning off all the screens at least an hour before bedtime.
The next time a storm comes to town, I’ll cut power to the house, sit in the dark, and contemplate all the bad habits I’ve been resolving to break as the thunder rolls by.
We hope you found this helpful — any feedback is appreciated and can be shared by hitting reply or using the feedback feature below.
Was this email forwarded to you? Subscribe here.
Have an idea or issue to share? Email us.
Connect with us using your preferred social media and website links for MyLandTrustee and Aspire Legal Solutions.
Our mailing address: PO Box 547945, Orlando, FL 32854-7945
Our physical address: 1901 West Colonial Drive, First Floor, Orlando, FL 32804
Be on the lookout for our next issue! 👋
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Happy Friday! It will be a three-day weekend for many [...]
Happy Friday! It will be a three-day weekend for many of us. While MLK Day is always observed on the third Monday of each January, this year, Martin Luther King Day will fall on Dr. King’s actual birthday of January 15. Our offices, along with banks and the U.S. Post Office, will be closed on Monday for the holiday.
AI-based real estate fraud is a growing problem. Owners and investors should be on the lookout.
Why it matters: Any real estate scam can interrupt deals, damage trust, and spell financial ruin for buyers and sellers.
Real estate fraudsters “never retire a successful scam,” said Sun Title CEO Thomas Cronkright, but their “social engineering strategies” have become much more sophisticated.
AI-generated real estate scams at this point tend to involve impersonating a property owner (to, say, ask a broker to divert the mortgage payoff to a different account) or sell someone else’s property using fake documents.
Seller impersonation fraud is particularly devious. Here’s one scenario:
Locate a property—preferably a vacant or unimproved parcel—on tax records and identify the owner.
Create fake, government-issued documents like passports or driver’s licenses using the owner’s name and the scammer’s photo.
Solicit a listing to a brokerage. Wait for the brokerage to verify the identification.
Advocate for a remote closing, with paperwork signed before an out-of-state notary.
Collect the proceeds from the sale.
Yes, but: No market is immune.
People think no one’s going to target their $40,000 lot in some quiet rural area, Cronkright notes.
“Let me tell you: they absolutely will.”
You can protect yourself. Cronkright, the chairman of wire fraud recovery and prevention software firm CertifID, says the company is testing an “identity validation only tool that would allow somebody at the initiation of a relationship to confirm identity—not when money is about to transfer funds.”
Until advanced tools are everywhere, owners and investors should default to the following:
Recognize red flags: Look for non-traditional timelines to closing, multiple out-of-state documents, and voicemails from sellers with unusual payment requests.
Double-check: Property details, seller information, notary seals, you name it.
Over-communicate: Get a strange request over voicemail or email
Follow up: Ask questions. Cross reference.
The bottom line: AI has the potential to wreak havoc for owners and investors. Real estate professionals should remain vigilant.
Mortgage delinquencies in most U.S. cities fell or held flat yearly — 2.8% from September 2022 to September 2023. But areas inundated with excessive heat, flooding, wildfires, and other disasters were the exception.
Why it matters: Americans are increasingly moving to disaster-prone areas— the very places insurers are abandoning in droves — taking on advanced risks.
Disaster-prone areas like California, Florida, Colorado, and Hawaii are a hot spot for property owners because they’re usually located in idyllic settings and can offer a good return on the investment.
But increasingly extreme weather means a home in paradise can quickly devolve into a FEMA tent in a parking lot.
Owners are still on the hook for their mortgage payments after a disaster, even if their property is uninhabitable.
Insurance may not cover every expense. It may not cover anything, giving many property owners no choice but to default.
Case studies from 2023:
Kahului-Wailuku-Lahaina suffered significant damage from wildfires in August. Subsequently, delinquency rates rose on the Hawaiian island by 3.5 percentage points to 5.7%, the highest year-over-year increase in the country.
Cape Coral-Fort Myers and Punta Gorda saw serious delinquency rates (90 days past due) skyrocket in 2023, a year after being nearly decimated by Hurricane Ian.
Yes, but: Delinquencies of 30 days or more rose year-to-year in only 15 states. Moreover, South Dakota, the state with the most significant increase, only rose by half a percentage point. CoreLogic economist Molly Boesel attributes much of the state’s low overall delinquency rate to low unemployment possible because of no natural disasters.
Property owners can stay protected if they:
Establish contingency plans to cover expenses not met by insurance or government assistance if a disaster strikes.
Regularly maintain their properties, including building structures, easements, and other infrastructure.
Stay informed about potential disaster risks, updates in the locality’s building codes, and changes in insurance coverage related to the area.
The bottom line: California, Florida, Hawaii, and other disaster-prone areas are teeming with potential investments.
But buyers in these places beware: One bad weather event can turn everything upside down.
Owners and investors should factor in climate risk from the start.
LoanDepot is the latest victim of a cyberattack this week, preventing some of their loan servicing customers from being able to pay their mortgages. Forbes, Bleeping Computer, and InfoSecurity Magazine
Mr. Cooper, another large loan servicer, has been hit with a second class action suit consolidated into one large suit in Texas, because of a major data breach where a cyberattack of its systems exfiltrated the personal data of over 14.6 million customers in October and November last year. Mortgage Professionals of America Magazine
First American assured everyone that the funds in its bank subsidiary were safe and unaffected by the cybersecurity attack on that company that happened before Christmas and hobbled the company until last week. Insurance Business Magazine
Fidelity National Title disclosed that hackers stole data on 1.3 million customers from a cyberattack in November. Tech Crunch
Detroit beat Miami for the first time — in home price appreciation — last month. CNBC
Lots of agents but few or no sales for most of them. HousingWire
Consumers’ optimism is increasing about mortgage rates. DSNews
Buffalo will be the hottest housing market in 2024, and Orlando is number 8 on the list. Zillow
The spring market will be so hot that it surprises you. HousingWire
Filing the Florida annual report, the FinCEN BOI report, and many other business compliance reports isn’t that difficult.
Why it matters: Like many things that aren’t rocket science, you can do these reports on your own. But is that the highest and best use of your time?
What they’re saying: After last week’s newsletter went out, I got a few responses like, “why pay someone to do something I can do myself?”
The same question could be asked for a lot of things we face daily:
Changing air conditioner filters.
Cleaning the pool.
Mowing, weeding, and blowing the lawn.
Cooking meals.
Cleaning our homes.
Maintaining our website.
Writing a weekly newsletter…..
Yes, but: While a task may seem easy, savvy entrepreneurs consider every task before spending time to do it.
How long does it take them to do it?
How much time will they need to learn to do it?
What else could they be doing that they enjoy and are great at doing?
How much will it cost for someone else to do it versus how much their time is worth?
In other words: Savvy entrepreneurs focus on who and not how. They may understand the big picture of how to do a task or project, but they spend less energy and time finding the right person to do it instead.
The bottom line: Many of our clients have multiple companies and a lot of plates spinning at the end of a stick. The reason they have those is because they’ve spent a little energy to find the right “who” to handle the details, tasks, and projects so they don’t waste time figuring out “how” to do anything that isn’t the highest and best use of their time, energy, and focus.