Posted on January 18, 2017
For many investors, the choices of what to do with their money over the last ten years has grown beyond expectation. From investments in rare wine’s to antique cars; furniture to musical instruments and even the major growth in crowd funding businesses to see a rate of return as near as 18% in some cases is really something that we can all admire.
However, when it comes to bricks and mortar, there has never been a marketplace or investment opportunity in these areas as ever before.
With more people placing their properties on the market than in the last decade, looking to either move from an area or simply go for larger square meters in their property, the housing market across the US has developed, especially after the financial crisis of 2006 – 2009.
Florida is of course one of those popular spots for real estate investment. Whether it is individuals buying a retirement property, a group of friends pooling their resources to get a second home or the standard winter migration to the state, Florida is a popular destination and a much sought after real estate investment dream.
If you’re in the market for property investment, here are just some of the pro’s of investing in this, Florida property marketplace.
Rates of return
When it comes to rates of return, the Florida property market is one of the best for investors. In fact if you look at the state as a whole, it has a better rate than nearly all with the state of New York and Hawaii only faring better in recent housing market reports. What type of return on investment are we talking about? Between 9% and 14%.
Between Orlando (2), Fort Lauderdale (8), Cape Coral (10) and Tampa Bay (14), these cities featured in the top 100 of property investment locations in a Forbes article written in May, 2016.
As discussed in the article, the findings didn’t shock the experts. “Why is Florida, of all places, dominating the list? “The Florida situation surprised me,” admits Winzer. But in light of the national economic recovery, Florida’s rise makes a lot of sense. Because it attracts retirees, second-home buyers, and investors, the Sunshine State’s housing market is subject to more volatility than other markets.”
If you were to look at property investment as a complete package, you would understand that it can work in two ways.
The first is that you have to buy the property, dependent upon condition, you could get a real bargain. But for you to make the necessary returns and margins on a re-sale, you need to use the right amount of leverage and finance facilities to make this happen.
That is where investing in Florida is great. The banks on average can provide the financial leverage for you and is typically 70% of full asking price.
Well, tax advantages for investing in Florida have been well noted. Aside from a handful of other states which include, Wyoming, Nevada and Texas, getting a tax advantage is one of the attractions of investing in the Florida market place.
There are different ways that one can get tax advantages, especially if the investor is living out of the state. Income tax is not collected by the IRS in Florida, and your overall tax payments will be lower. There are of course many different ways of getting tax relief from Florida property investment and these should be researched and discussed first before making any big leaps into the real estate market.
For investors looking to use the right company to source and find properties for great opportunities, give us a call today to see how we can help you with your queries.