Should I purchase an investment property in Florida? This is a question many individuals have been pondering and asking Realtors, not just recently but even long before Florida’s real estate meltdown.
So where in the spectrum of potential Florida home buyers does your prospect fit in? In today’s market climate, current and potential buyers range from those determined to relocate and start a new life in Florida, to pure investors betting on making profitable gains from reselling undervalued homes as well as entering the Florida holiday home rental market.
It is not surprising that so many people are keen to consider buying property in Florida to take advantage of nearly 365 days of sunshine a year and numerous outdoor recreational activities whilst spectacular scenery, lower living costs and thriving cities are other reasons for the popularity of Florida investment property. All of this coupled with the fact that Florida has no State Tax makes this move a very tempting one!
However, there is a multitude of pitfalls to avoid and many questions that warrants answers so before buying Florida investment property or a Florida holiday home rental property, a future home buyer will undoubtedly do thorough research about the market before purchasing anything. To help educate yourself if you’re a future buyer or a Realtor looking to educate your prospects who are considering buying Florida investment property, below are just some of the facts & advantages to serve as guidance that your future clients would love to know!
- Relatively lower home prices - Statewide, home prices have fallen significantly in the past five years. Even though there has been a consistent upwards trend of home values in most markets, the typical price per square foot in Florida is still significantly lower than pre-recession levels. Undervalued homes are not here to stay however. Florida home values have gone up over 13% during the past year and is estimated to continue rising to approximately 5% more within the next year – so buyers should not wait too long!
- Mortgage rates - Mortgage rates are still at the lowest levels since the 1960’s. Lower rates multiply a buyer’s financial power. Buyers can get more home for the money, which is a perfect scenario for families looking to up size.
- Incentives - Federal, state and local housing programs can help buyers make that big purchase. Local mortgage lenders would be able to shed more light on state and federal incentive programs.
- Consistent Real Estate growth - Florida has been one of the 10-fastest-growing states in the U.S. for each of the past seven decades and will continue to provide a foundation for other economic development, such as new jobs and growing incomes. Naturally, these trends are positive indicators for real estate growth.
- Retirement destination of choice - Florida is still among the favorites when it comes to selecting a retirement destination. Over the long term, Florida stands to benefit from the migration of the aging Baby Boomer generation, roughly 80 million strong. The Sunshine State’s mild climate, outdoor amenities, luxurious retirement communities as well as top notch medical facilities continue to make Florida a favorite retirement destination.
- Quality of life – Finally, let’s not forget the things that brought people to Florida in the first place, and will continue to attract them — beautiful beaches, temperate climate, outstanding recreational amenities and a friendly business climate, with no state income tax!