Florida is America’s number one holiday destination for a reason, drawing millions of tourists with its rewarding lifestyle. This makes it a lucrative area to invest in, as owning properties here has proved a worthwhile purchase. And since real estate can also be a gamble, it’s understandable you’ll want your property investment dollars to thrive. When you count in snowbirds, retirees and foreign capital, no wonder the Sunshine State market is tempting. If you’re still trying to make up your mind about whether to invest in Florida or not, read the rest of the article to put your fears to rest. This gamble’s worth it and here’s why!
The tourism industry is booming
Florida’s economy is strong, and it has a lot to thank the tourism industry, which continues to set records every year. The rapid growth of the Sunshine State’s major cities like Miami and Orlando is propelling the economy. This is leading to job creation which in turn leads to building housing to accommodate the demographics growth. But it’s not just the tourism – in case you were wondering why people are moving from NYC, the answer is – they are moving to Florida! In fact, Florida recently beat New York to become the nation’s third most populous state.
But even if it’s just the summer months, strong tourism is a compelling reason to invest in Florida. If you decide to purchase a holiday rental, it will most likely be an excellent potential for return. The whole coastline can be considered a hotspot, so you can’t go wrong with this decision. And in times when there are no tourists, you can use it as a family vacation home and have your holiday basking in the Florida sun. Sounds inviting, doesn’t it?
The real estate market is strong
But it isn’t just tourism that is thriving here. What’s captivating for investors is the condition of the Florida real estate market. It is currently along the normal trend lines, and it’s slowly regaining the balance and becoming stronger.
Of course, foreign capital has helped to an enormous extent when it comes to stabilizing the real estate. Foreign investors have driven demand and even started bidding wars in the South Florida market. Yes, the competition can be harsh, but that shouldn’t scare you off if you find a professional real estate agent. If we’re looking at the median home value, it is around $245,000, and it’s predicted to rise by 2.0% during 2020. Let’s not forget that much of Florida is an ever-growing area. Therefore, it’s simple math that owning land in the path of growth always proves to be a strong investment. If you want to invest in Florida’s market, then it’s best to opt for buy-to-let investments as they are most likely to see significant gains in the future.
Invest in Florida for its high inventory
As now we’re in the off-season, the real estate market can be a little less hectic. This is the perfect time not just for homebuyers to score their perfect home, but for investors such as yourself to find the property at highly desirable destinations. With the inventory always brimming with a wide range of properties at various price points, you’ll easily find the right fit for your budget. This is just another one of compelling reasons to invest in Florida.
You’ll find all kinds of housing, from condos in resort developments to luxurious villas right next to the beach. Homebuyers are mostly opting for single-family homes by getting a home mortgage. Seeing as it’s a buyer’s market nowadays, demand is less than supply. This, in turn, means you’ll have plenty of choices on the table. Again, don’t rush yourself into buying the first property you see. Bid your time and the right property on the top-notch location will surely be yours!
A great retiring spot
Are you a soon-to-be-retired baby boomer looking to spend your retirement days in the sun? You’re not the only one, in fact, the majority of homeowners in the state are exactly baby boomers. A large majority of retirees are opting for pre-retirement investing – buying property now and renting the place until they relocate. You can move anywhere in Florida with ease with the help of a reputable moving company, so this is a rather good strategy. If you’re a snowbird, you might’ve already stayed in Florida during the winter months, so why not relocate here long-term? The first benefit that comes to mind is, of course, the weather, but the close second is the cost of living.
For retirees who only have fixed income, it’s natural you’ll want to move somewhere where your money goes further. Then there are the endless recreation activities which will enrich your golden years and help you to stay energetic. All in all, you can’t go wrong if you decide to invest in Florida and living out your retirement on the West Coast.
We’ve mentioned many benefits which should make you want to invest in Florida, but here’s the cherry on top – there’s no income tax! Yes, you’ve heard that right – Florida is one of the seven states that forgo individual income taxes last year. The end result is the overall lower income tax. Now, as a real estate investor, you definitely should reap benefits from this. Of course, if you plan on moving here and declaring your property your primary residence, there are many more tax benefits to look forward to. Not to mention that over time, your property’s value will probably increase over time, making you feel like a skilled investor that you are. This means that at one point, it will reach a point where it’s worth more than it’s assessed value. In the end, it’s all about building equity year after year that will be sheltered from property taxes.
Author bio: Michelle Scott is an SEO expert and regular contributor to various Florida-based moving company websites. She’s on a mission to help potential clients pick the right place for their new home and to facilitate their journey to the new destination. Her advice can also be found on her Facebook and Instagram profiles.