Why Investors Are Looking At The Florida Housing Market
If you were to look at the great state of Florida you will notice the following things:
- Lots of sunshine… like loads of it. On average the state gets 80% sunshine throughout the year!
- National parks! Ever heard of the Everglades?
- Beaches, 663 miles of them to be precise
- Art Deco, some call it the birthplace, others, well, don’t listen to them.
- And so on…
Yes, the state of Florida has some amazing things, and by some, we mean loads of amazing things but is that the reason why investors are shifting their interests into the great state of Florida or is there something else going on? We’ve decided to take a look at some of the hotspots and show you why Florida is becoming a great investment opportunity in the Florida housing market.
From Broward County to Miami Dade there are a variety of opportunities that have made the market an investor’s paradise, especially when it comes to diversifying their market portfolio.
Strong Rental Market
Since renting started, Florida has managed to capture the essence of short term and long term rents. Seasonal migration means that you can have your property rented for at least 6 months of the year, or even establish longer contracts where the occupancy is still only the same amount of time.
With median rental prices at $1700 per calendar month, investors can see a 10% return on their property portfolio.
Location, Location, Location
OK, so if it isn’t clear from our introduction, let it be clearer now. You are in the state of Florida. Yes, in every state there are areas which appeal more than others, but in Florida, you have a smorgasbord of properties to choose from.
Beach front locations, suburban streets, winter bird migration hot spots and so on. It’s not uncommon to see people camping on the lawns of homeowners trying to sell their homes for $1 million dollars; why? The area is that attractive. Simple.
Diversify your assets
With the current low mortgage rates, the ability to generate an income for your property, considering your savings would bring in close to zero interest if they stayed on a bank account, makes real estate investments pretty attractive those days. Once again, just make sure you can afford the mortgage without compromising other areas of your budget, and have an emergency fund ready if the property needs more repairs than you thought, or if the tax bill increases this year.
You can grab a bargain
Miami is a bargain centre for investors right now; both the market crash in 2009 combined with a little more fiscal prudency has meant that the housing market has become a great opportunity to grab a great housing bargain. But, you want to get there quick, some areas are massively on the up and what is today’s bargain is tomorrow’s dream home.