Should You Invest In Floridas Housing Market Now
Investing in real estate is generally considered the safest investment option. Floridas real estate market has also shown great potential over the past few years. And this trend is expected to continue in the coming years too. By the end of 2022, average real estate prices in Florida are anticipated to grow by 2.0%, making it a preferred state for real estate investments.
However, the real estate market in Florida is highly regionalized. It means some cities are good to invest in while others would not give better returns. So, always research the market and consult your realtor before investing in a property. Some best places to invest in Florida are:
Shift In Lifestyle Preferences
The pandemic has changed the meaning of home for most people. Home is no longer just a place for sleeping and storing clothes and furniture. Being forced into spending more time at home has made people seriously think of where they want to stay. This new mindset has led many to relocate to Florida, known for its warm climate, natural sceneries, theme parks, and relaxed tax laws, increasing the demand for residential properties.
Smart Tips For Miami Real Estate Investors
Now, before you decide to invest in Miami real estate, you should first ensure that you are ready and well-informed. Here are a few things you should do to start your real estate investing journey off on the right foot:
1. Know your target market.Unfortunately, some investors often assume that theyll succeed just because they invested in a strong real estate market. What they dont know is that it takes a lot of experience, knowledge, and analysis in order to succeed in real estate. Figure out which tenant group you are looking for: students or working-class members, long-term or short-term tenants. Choosing your exact location should be next. Look for a location thats still growing and closer to your target renters. For example, beach-side properties are ideal for tourists, and students who prefer to live close to their schools, and working-class members wouldnt mind a shorter commute.
3. Decide on how you are going to manage your property in Miami. Should you do it yourself or hire a property manager? Hiring a manager takes a huge burden off of you and can greatly improve the experience you have with your investment. Property managers handle almost all aspects of handling the rental property in Miami. This means that you get more time and freedom to work on other projects. Choosing the right property manager is, needless to say, key. Not all of them are created equal so take your time to select the company best suited for your needs.
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Regardless of the pace of property value appreciation, youll have use of your vacation home whenever you want.
Thats right, and this may make it a good lifestyle choice. But there are always plenty of Florida rentals to choose from if you arent tied down to going to the same place on every visit. Its much cheaper to rent for a month or two than to pay a full years cost of ownership.
But you can rent the place out to generate income.
Thats true. But most renters want to rent the place in the same periods when you want to be there. Youll get low rent, if any, the rest of the year. Then too, expectations of nice weather supply a lot of Floridas appeal, but weather varies. A couple of cool winters could hurt rental and buyer demand for your property. So could a hurricane or two. Meanwhile, costs accumulate.
A Center For New Infrastructure
All of the tourists who come to Orlando and Central Florida have the extra benefit of providing funding for the region to invest in new infrastructure. The bigger highway in the Orlando area is in process. Because of the increased number of travelers, the Orlando International Airport is building a new terminal. This airport alone sees more than 40 million passengers each year.
On the other hand, the airport, Orlando, and Poinciana in Polk County are now connected by the Sunrail commuter rail. It makes it easier for commuters to move around Orlando to work. New road networks, such as the Polk Parkway, are also under construction. The All Aboard high-speed railway connecting Orlando and Miami will be one of the most intriguing new ventures.
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Florida Real Estate Market Why Should I Invest In Florida In 2021
According to the US Census Bureau, in 2018, Florida had a population of around 21.5 million people. Over the next two years, the Sunshine State population has a growth expectancy of more than 700,000.
As provided by reports from the Florida Chamber of Commerce, the population in Florida can reach an estimated 26 million residents, more than Australias current population .
In this case, you can see populational growth as a positive trend. It will boost the housing market and stimulate economic growth. In 2021, median home values have grown by 7.9% in comparison to 2020. When compared to the past five years, Florida home values increased almost 38%.
Even the growth in remove work was a positive factor for the local market. The demand for affordable housing continued to grow during the pandemic.
Transparency & Ease Of Process In Real Estate Transactions
With the right advice and guidance, you will find that Florida is one of the easiest places in the world to buy investment property. Real estate transactions are highly transparent and efficient. Timelines and processes are clearly defined, and most contracts offer a time is of the essence clause- meaning parties responsible for the transaction must work in a timely manner.
Florida is also one of the few places in the world to have title insurance: which means your title is 100% guaranteed rock solid. No one can ever claim they own your property, and that is backed up by a cast-iron guarantee from the title insurance company. This is a to many European countries, where tracing the ownership of a property can be onerous and in some cases virtually impossible, which means you can never be 100 percent certain of your ownership.
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Get Your Business Affairs In Order
If your goal is to rent out your investment property as a way to generate passive income, youll want to take safety measures to protect your assets. Setting up a formal business structure for your rental business in the form of an LLC, or limited liability company, is a great way to keep your personal and business assets separated. Plus, LLCs offer tax benefits come tax time, which will help keep more profits in your pocket. You may even benefit from purchasing your property under your LLC, so if youre planning to start a rental business with your investment property, you should consider registering your LLC before purchasing your home.
Why Invest In Florida Growing Population
Population growth spurs on demand for property and the best investment destinations show consistent increases in population. This is definitely the case in Florida the state added 430,000 new residents in 2017 and a further increase of 4.7% is expected this year. Analysts forecast a rise of almost 11% in the Florida population by 2023 when the Sunshine State will be home to 23.3 million people.
Did you know? Fort Myers, Orlando, Jacksonville and Tampa currently register the highest population growth rates in Florida .
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Why Invest In Florida Booming Tourism
Tourism forms the backbone of the Florida economy and the state ranks as one of the worlds most popular holiday destinations. After record years in both 2016 and 2017, the Sunshine State registered its strongest quarter ever for tourism between January and March this year. An estimated 32.3 million visitors chose to holiday in Florida, 7.4% more than the same period in 2017. Domestic visitors rose by 8.5%.
Strong tourism acts as a compelling reason to invest in the state. Holiday rentals offer excellent potential for return, particularly in vacation hotspots such as Orlando or anywhere on the stunning Florida coastline.
Did you know? Florida ranks as the most popular place for a holiday in the US with Orlando taking the lions share of tourists.
Enjoy A Stable Housing Market
The current condition of the Florida real estate market reflects a return to the normal trend lines, as the market has regained its balance and becomes stronger. Real estate listings, which have trended up for several months, have replenished the inventory of homes to the traditional 5 to 6 month supply level.
Yun describes the real estate market as encountering some degree of recovery, which should continue for the next 2 or 3 years to reach the price level of 2006-2007. This will occur before the market moves into the expansion phase of the business cycle.
With a growing economy and the momentum of job creation, the NAR predicts existing-home sales to come in at 7 percent in 2015. Mortgage rates are also expected to increase in 2015, but stay near historic levels with only minor effects on home buyers. The following factors will help expand the pool of available home buyers:
- An influx of new residents who will be looking to buy homes.
- Lenders who will ease the credit standards and qualify more buyers.
- Former homeowners who lost their properties in short sales and foreclosures will re-enter the home buying market.
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Local Real Estate Agents
At Icon Realty, we have plenty of experience with investing in Florida properties and consider ourselves highly knowledgeable for our clients. The real estate market is thriving in Florida, like many other states we were set back by the COVID-19 pandemic but 2021 brought new light to the state. We are seeing property values and job markets increase overall as we begin to get out of lockdown and back to regular life. 2022 could be your year to make some financial gains and invest in Florida real estate!
Get in touch by visiting our contact page today. Or, if youd still like to learn more, you can do so by visiting our blog.
Things To Know About Investing In Florida Property
Now the colder weather and darker days have arrived in the UK, theres no surprise that many people become interested in purchasing either a vacation home in a warmer, sunnier climate or investing in a property where they can see some return on investment. By having an investment property or vacation home readily available, seeking the sun in winter has never been easier! For many people, Florida is the most popular choice of location.
Fondly referred to as The Sunshine State, Florida boasts warm and dry weather offering a much-welcomed break from the bitter cold of a British winter. Not only this, but some Florida investment properties are situated close to Disney World, ideal for families looking for the perfect base for their dream holiday.
If youre considering buying property in Florida, we are here to help. Alistair Brown International Real Estate have years of experience in helping people find their perfect property in Florida, giving us valuable insight into the Florida real estate market. Keep on reading to discover some of the main things you should know about investing in Florida property.
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The Market Is Amazing
The temperature in Florida isnt the only thing thats hot. In fact, the Florida real estate market has historically been one of the most rewarding investment areas. There are several reasons to believe that buying Florida investment homes is a worthwhile experience. Many first-time investors invest in luxury properties in Florida. The state, for example, provides citizens with a substantial return on their real estate investments. This implies that, while you may pay more upfront for your selected house, your investment will pay off in the long run.
Even if you want to invest in a property, and decide to move in it afterward, it will be a great investment. When you decide to move, keep in mind that specialists are at your disposal if you decide to hire them to help. If you hire professionals, the task will be much easier.
Why Invest In Florida Easy To Get To
And last on our list of reasons to invest in Florida is easy access. The state has numerous airports with regular services to both international and domestic destinations. This boosts the states tourism and by extension, the holiday let market and also makes it easy to get to if youre investing in a second home to use yourself.
Did you know? BRIC Group has a range of Florida investments in prime locations within the state. Prices start at just US$26,500 and include finance options. All are owned by the BRIC Group so are tried and trusted investments offering solid potential for return. Get in touch for more information on which suits you and your portfolio.
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The Value Of Homeownership
Owning your own home allows you to truly enjoy a sense of wealth. Studies show that home equity is the largest source of household wealth, and investing in real estate as a source of income can only enhance this feeling. Owning a home can also lead to increased personal well being and higher levels of self-esteem and life satisfaction. These feelings in turn can help homeowners, investors and their families be more productive members of society.
How To Invest In Florida Real Estate
Much like California, Florida has often been the land of investor dreams and investor heartache.
A potent mix of retirees, snowbirds, job seekers and foreign investors has swung home prices to ridiculous highs and stomach-churning lows more than once in the past. In just a few years before 2008, home prices in some Florida markets more than doubledbut after 2008 they fell 60%.
In the years that strong economic growth has returned to Florida, its not surprising that home prices have again climbed briskly in almost all local Florida markets. Does this mean that investors can just dive back into the warm Florida waters, certain of a good return on their efforts?
Orlando, Florida photo credit: Getty
Getty
Alas, its not that simple. Sure, you can invest in any of the Florida markets, but how you invest will make all the difference down the road.
To help you figure out the best way to approach each of the 21 local Florida markets we cover at Local Market Monitor, weve assembled some economic statistics. And based on these stats weve divided the markets into three categories of Florida investment strategy.
Florida Markets 2019
Local Market Monitor Inc,
Note first that job growththe most important driver of demand for housingin all of these markets is impressively high. The national average increase over the past year was only 1.8%.
With these uncertainties in mind, lets see if theres a sensible way to invest in these 21 markets.
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Modern Infrastructure And Major Institutions
Floridas modern infrastructure is ranked #2 in the U.S. with four major airports, 15 deepwater seaports, two spaceports, more than 12,000 miles of highways and nearly 3,000 miles of freight rail track routes.
In addition, higher learning is a huge attraction in Florida with approximately 160 colleges and universities throughout the state including University of Central Florida, Florida International University, University of Florida, University of Miami, and Florida State University.
Florida is committed to education, with all Florida residents living within 50 miles of a community or state college or university. Not to mention that 40% of Florida residents are college educated themselves.
Why Invest In Florida Real Estate In 2021 Professional Guidance Is Crucial
Whether you are a novice buyer or an experienced investor, it is crucial to have professional guidance when investing in Florida real estate. Every transaction is different, especially in a dynamic business environment like Florida.
Consequently, it is fundamental to work with an expert team to ensure you will have everything in place when it is time to close the deal.
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How To Find Investment Property In Florida
If you’re looking for investment real estate in Florida, you’re in luck! There are plenty of great places to find investment property in this sunshine state. Here are some tips for finding investment property in Florida:
- Look online. Many websites list investment properties for sale in Florida. This is a great way to start your search.
- Contact a real estate agent. A real estate agent can help you find investment property in Florida that meets your needs and budget.
- Check out local newspapers and classifieds. Often, investment property is listed in local newspapers and classifieds. This is a great way to find properties that may not be listed online.
With these tips, you’re sure to find the perfect investment property in Florida!
Crucial Things To Keep In Mind
Real estate is a great way to invest your money, but only if you do it correctly. You have many options to choose from, including purchasing commercial real estate and flipping houses. Each option has its pros and cons, so it is essential to consider some factors before deciding where to put your money.
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