Investment properties in Florida: why investing is a wise decision
There are many reasons to buy an investment property in Florida, the most important being appreciation in value. Property values generally increase while debt decreases; make real estate purchases a sound investment. Every year since 1968, the national median home price has increased. Typically, home values increase around the rate of inflation, with a higher increase possible. In recent years, median prices have increased by as much as 9 percent, making buying investment property in Florida a good long-term investment. Building equity is a great reason to buy investment property in Florida. Equity grows over time for landlords, while renters see no return on their money. Buying a property forces you to save, making you a smart investor without realizing it. Owning an investment property in a Florida location can allow you to expand, purchasing second and third properties as rental earnings increase. Owning an investment property in Florida gives you lending power, the ability to use the equity in your property to borrow funds for your own use or for future investments. Owning an investment property in Florida gives you a sense of stability, not only because of the consistent rental income, but because of the potential for it to become a regular seasonal vacation home for your family. Imagine the pleasure and ease of knowing where you are going to vacation, there is no need to decide the place and try to compete for reservations, with prices that change every year. There is stability in owning an investment property in Florida that can also be used as a family vacation home.
Why the interest in Florida investment property?
Considering the large number of investment property locations on the market, Florida investment properties are one of the most desirable. Home to 11 of the 100 fastest growing counties in the country, an investment property in Florida has high potential for profit, unlike most other areas. Port St. Lucie, Miramar and Cape Coral are the fastest growing cities in Florida. You are unlikely to make a mistake when investing in Florida real estate considering the large number of tourists and new residents flocking to the land of sun and surf. The hardest decision to make will be which location in Florida to buy. Good investments abound in every area of the state, from Miami in the south to Clearwater on the Gulf Coast, as far east as Daytona Beach and north to the Panhandle. The selection of a location depends on your goals for purchasing an investment property in Florida. Carefully consider what you intend to do with your Florida investment property. Will your purchase be used primarily as a vacation rental property? Do you intend to have access to the property during certain seasons? Or is your goal to rent the property to local tenants? Some of these questions will help you narrow down your search. Once you’ve determined whether your Florida investment property will be used primarily by vacationers or local renters, and if you intend to use it as a vacation resort, it’s easier to choose a location.
Investment Property Rentals in Florida
There are so many investment property location options in Florida, making it difficult to select the right location. Let’s start from the top! Do you want a beachfront location, or near the coast, or do you prefer to select a property in an urban setting? Tourist area or settled community, inland or beachside? Asking these questions helps you narrow down your search. Each area where an investment property in Florida is located has its own flavor, its own attractions. Let’s start with the Miami area. Miami is located in the southeastern corner of Florida and Miami Beach is a seven-mile-long island known as America’s Riviera. The home appreciation rate in the Miami area is approximately 11%, with a median home price of around $240,000. There are various offerings of single-family homes, beachfront properties, and ocean view condominiums. Of course, condo and home prices are offered in a wide range, with exclusive areas bringing in up to $5 million. Condos and townhomes can be cheaper, depending on the location, but with rising prices and population density, even there it can be hard to find a bargain. Miami offers beautiful beaches with perennial sunshine, but traffic congestion and population growth may be a discovery for some. Just forty miles north of Miami is Boca Raton with five miles of coastline and beautiful beaches. The appreciation rate here is around 11%. Clearwater, on Florida’s west coast, borders Clearwater Harbor and the Gulf of Mexico. Indian Shores is a small, historic community offering condominiums, gulffront properties, and homes and townhomes on the Intracoastal Waterway. The appreciation rate for investment properties in Florida, Clearwater is around 9%.
Investment Properties in Florida – Daytona Beach, Jacksonville and Destin
Moving north in our search for investment properties in Florida, let’s take a look at the Daytona Beach area. Daytona is known as a spring break and family recreation spot on Florida’s east coast, about 50 miles northeast of Orlando. Home prices are surprisingly reasonable here compared to other popular Florida beach locations. Appreciation is around 10% with homes starting at $80,000. There is a wide variety of housing options, from inland or waterfront properties, to townhouses and single-family homes, waterfront or inland. Old houses abound, but there are also several new luxury construction projects. Let’s take a look further north at Jacksonville. Jacksonville is known as Florida’s River City due to the ever-present St. John River flowing through the city, ponds, and lakes. A modestly priced investment property in Florida can be found here ranging from $60,000 to several million. Appreciation is around 9% with housing construction continuing to grow. Unique to Jacksonville is its diversity of neighborhoods and construction styles. Destin is located on the Emerald Coast of Florida, on the Gulf of Mexico. It’s just south of Alabama and was recently voted as having the best beaches in the US Destin has great seafood and great golf and fishing. Home appreciation here is around 12% with the median home price around $165,000. Condos and townhomes here start at $100,000 and can run into the millions for waterfront properties.
Investment Properties in Florida – Attractive Tourist Areas
Let’s play a little word association. I’ll say Florida and most people will probably say Walt Disney World, or something related to the Orlando area. Orlando has a booming tourism economy that attracts nearly thirty-five million visitors each year. Real estate is booming here with the median price taking a dramatic jump from $166,000 to $200,000, an appreciation of 27%, making investing near Orlando a great adventure. Conway Belle Isle, East Orange County, Maitland/Winter Park and Northwest Orange County have seen the most dramatic increases in property values. There is a strong job market here with no recession forecast, keeping prices strong. There is a wide variety of properties to choose from, including starter homes, modest cabins, older homes, and stunning new developments. Orlando calls itself the Beautiful City and owes part of that title to its cleanliness, novelty and innovation, and variety of nearby lakes and attractions. Whether you’re considering a Florida investment property as a local rental, tourist rental, or rent-and-use property, Orlando is a great location choice. Consider the many options for attractions in the Orlando area. Walt Disney World would be the most prominent attraction card, followed by Sea World and Universal Studios. But along with these well-known attractions, there are a plethora of other hot spots. Wet-N-Wild draws a lot of the summer crowd, a great place to cool off on a scorching Florida summer day. The Kennedy Space Center is a great day trip, as is Cocoa Beach, home to Ron Jon’s surf shop, and Daytona Beach, a world-famous spring break and family destination.
Florida Investment Properties – Locations near Disney World
Having established that owning an investment property near Orlando would be a wise investment decision, the search for a specific location now begins. Disney World, Sea World and Universal Studios are located on the south side of Orlando. Condominiums, townhouses, and single-family homes are commonly purchased as investments in this area. The closest thing to the Disney area is the community of Kissimmee, Florida. Kissimmee was a sleepy cow town just a decade ago. Now it is booming with tourist activity. A quaint downtown area still exists with a few cattle ranches on the outskirts, but overall the flavor of Kissimmee now reflects its large tourist population. Close to Disney, 30-45 minutes away, is the lesser known town of Davenport, Florida. Surrounded by orange groves, it gives you the feel of old rural Florida, yet is close enough to major attractions to make this an attractive investment option. Looking to get into a ground floor investment opportunity? Bimimi Bay Resort, a new townhome community now offering purchase opportunities. The many amenities in the planning stages include a resort pool, 2 movie theaters, a major chain restaurant, clubhouse, lazy river, food court, and many others. For the price of principal, interest, taxes and insurance, the owner has many advantages of using the property for a minimal fee while on vacation and letting Bimimi Bay take care of all the rental headaches for the year , and still receive a reliable monthly income. . It is a no-loss deal for investors.