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IRA Financial Group Blog

Leaving the Northeast for Florida

3 Minute Read

Recent reports indicate wealthy homeowners are leaving the Northeast for Florida.

Key Points
  • The pandemic has changed work forever
  • Work from home means work may be possible from anywhere
  • Expensive cities no longer have to be the hub of the work world

Fleeing New York and New Jersey

For those who are looking to leave the tristate area, there can be many reasons. It’s never been inexpensive to live in New York, Connecticut, or New Jersey,and now is no exception. High rental prices, absurd home ownership prices, and taxes far beyond the norm abound. But is there a need for it? Do employees have to reside in the tri-state area anymore?

With corporations and companies still closed due to the pandemic, and many, many organizations still working from home, it’s become less vital to have an apartment near the office itself. Some flagship stores themselves are closed, some corporate headquarters are shuttered, while industries turned online to get everything done they need to. Leaving the Northeast for Florida is more than just a movement – it’s a metaphor for how New York City is reeling right now.

Some are indicating that what makes New York itself is lacking in the days since the pandemic overtook the city. Restaurants and bars are closed, some permanently. Theater and live performances are on hiatus until further notice, and although online presentations have proliferated, they don’t have the same feel as a live concert, in, say, Central Park. Gig workers, lighting professionals, sound engineers, Broadway stars, as well as traditional corporate workers are seeking less expensive homes now. They’re also looking to get away from unwanted fireworks and a pervasive gloominess overhanging a city that still feels devoid of life.

Florida Calls

Many people fleeing the cities are looking for luxury homes in other states. According to an ABC News piece, there are so many people leaving the tristate area that some moving companies are booked out and are turning people away. If you’re leaving the Northeast for Florida, you’re certainly not alone.

Reports indicate over 900 people a day are moving into Florida, with many coming from the Northeast, especially the tri-state area. This influx indicates Florida real estate could continue to be an attractive market. More space, larger plots of land, warmer climate are just some of the reasons cited. Additionally, many fear a second wave of pandemic and want to be more comfortable with their families should they be forced to quarantine again, for any length of time.

Investing In The Future

If a Self-Directed IRA is in your future, or you currently have one and are looking for areas to invest in, signs indicate Florida could be a real estate market with explosive potential. For those fleeing the Northeast to Florida, it can be an excellent time to invest in real estate, condos, and rental properties, all of which can be done via a Self-Directed IRA.

Self-Directed IRA LLC with Checkbook Control, also referred to as Checkbook Control IRA, is an IRS and tax court approved structure. It allows you to use your IRA funds for practically any type of investment. Traditional and alternative investments can include stocks and bonds, real estate and cryptocurrency.

To establish the Self-Directed IRA LLC with Checkbook Control, the IRA establishes and owns a limited liability company (“LLC”). The IRA account owner (you) will manage the LLC. The passive custodian then transfers the the IRA owner’s funds to the new IRA LLC bank account.

Investing in real estate presents excellent appreciation opportunities and investment potential. With so many from New York, New Jersey, and Connecticut heading south to potentially maximize their way of life, real estate holders and investors can find ways to make money from the situation. No matter what the reason for leaving the Northeast for Florida, if a better life awaits, make sure you’re still saving for retirement and all your new adventures.

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