Eternal summer, endless beaches and great amenities make Florida attractive to both tourists seeking an unforgettable vacation and immigrants planning to find a home here. But is the local climate-friendly for real estate investors? The financial recession caused by the COVID-19 pandemic has hurt the state’s real estate market, which is still recovering. Please find the key arguments for purchasing apartments and houses in Florida in 2022 below, along with advice for aspiring investors.
CONTENTS
- Reasons to invest in Florida real estate
- Advice for aspiring investors in Florida real estate
- Best cities for investment in Florida real estate
- Buying real estate in Florida
Reasons to invest in Florida real estate
These are the major reasons to invest in Florida residential property today:
- The local real estate market is faring far better than other major US markets. While megalopolises such as New York and San Francisco are experiencing a downturn, the Florida real estate market has been growing in 2022. The average value of a local residential property is currently USD 348,732, which is 28% higher than in 2021. The pandemic changed people’s attitudes towards housing, which resulted in Florida becoming a popular US destination for domestic and international immigrants. This suggests that the demand for local real estate will keep growing.
- The state’s tourism industry is extremely well developed. Buy-to-rent property located in popular tourist destinations generates a higher return on investment. The Sunshine State attracts tourists with its theme parks, beaches, events, ports and cruises, as well as other leisure and recreation facilities.
- The Florida population is growing. It is an important factor to consider for a buy-to-rent property because it means a greater number of people will need homes. About 900 people move to the state every day and there are no signs of migration slowing down in the mid-term, so local homeowners can be sure of an increased demand from tenants and buyers.
- The Florida labor market is booming. Its development is crucial for the real estate investment climate. When people have permanent, well-paid jobs their purchasing power increases, so they can afford to make mortgage payments on time or save for a deposit on a new home. The number of new employment opportunities is continuously growing here and the unemployment rate is very low, making Florida one of the best US locations for investment in residential property.
Advice for aspiring investors in Florida real estate
An investor buying real estate in Florida must take several factors into account, the most important being the location of the residential property and the strategy for generating the highest return on investment.
Location
Florida is a peninsula with the Atlantic on one side and the Gulf of Mexico on the other, enjoying a subtropical climate in the north of the state and a tropical climate in the south. Florida’s prime location remains its key advantage in the domestic real estate market. Annually, Florida’s beaches attract crowds of tourists who want to have fun on their seaside vacation, particularly snowbirds looking to escape the fraught northern hemisphere winters. Tourists are ideally the group that an investor should target. When selecting a specific apartment or a home as a buy-to-rent property, you should consider how close it is to a beach, a cruise terminal and popular tourist attractions.
The location chosen by an investor must match their selected investment strategy, as outlined below.
Investment strategy
An investor must first determine the strategy they are going to pursue to generate the highest possible return. There are multiple options, from flipping an old house to investing money in an existing buy-to-rent property.
When making a decision on the strategy, an investor must take into account their business goals. What income are they planning to receive? Are they planning to make money for years by leasing their property? Or do they intend to resell the residence soon in the hopes of turning a profit? In the latter case, you need to assess the trends of consumer demand for housing in a specific district. Do not resell your property too early if it is located in a popular area where property values are sure to grow with time; such a decision can result in a loss of potential income.
Having answered these questions, an investor will be able to clearly identify the criteria which their property must meet.
Best cities for investment in Florida real estate
As people keep moving north from the overcrowded Miami-Dade, Broward and West Palm Beach Counties, the investment attractiveness of real estate in Central and Southern Florida is growing quickly. Residences located along the Atlantic Coast and the Gulf Coast, from Hernando County to Collier County, are in the highest demand among buyers and tenants.
Let us look at the three Florida counties and their cities, which are currently the most attractive areas for investors.
Brevard County
Brevard County on the east coast is located approximately 80km southeast of Orlando. Its pleasant climate, with hot summers and mild winters, attracts tourists and immigrants alike. The location also boasts an affordable cost of living and a low unemployment level.
Over the past decade, local real estate prices have been growing, which suggests that investors who purchase here can be sure of a high capital gain. The properties with the highest yields are found in areas such as Palm Bay, Malabar, Indialantic and Mims. Rockledge and West Melbourne are also popular among house-hunters but higher prices might mean lower returns for investors.
Polk County
Polk is a landlocked county southwest of Orlando, a few minutes' drive away from Tampa. Its advantageous location means lower vulnerability to hurricanes compared to coastal cities. This makes purchasing a property in Polk County a great option for investors and house-hunters who would like to minimize the risk of property damage as a result of extreme weather.
This district attracts buyers and tenants who prefer a slower, more relaxed lifestyle. The crime rate here is low, which is particularly agreeable for families with children and retirees. Real estate in South Lake Hollingsworth, Lakeland Highlands, Edgewood and South Lake Morton is in the highest demand.
Lee County
Lee is a fast-growing county in Southwest Florida on the Gulf Coast, with warm winters and well-developed infrastructure. Local real estate has high investment potential. There are plenty of beaches in this county with great amenities and beautiful islands, such as Sanibel and Captiva. The most populated communities are Fort Myers and Cape Coral, located on the Caloosahatchee River.
The real estate with the highest returns is found in communities like Sanibel, McGregor, Whiskey Creek and Lochmoor Waterway Estates. Buyers with a limited budget might prefer residences in Cape Coral, North Fort Myers, Buckingham or Lehigh Acres.
Buying real estate in Florida
Selecting and purchasing a residence in Florida can be a complicated process for people with limited knowledge of the American real estate market and who are new to property investing. To make a lucrative investment or find your dream home when relocating as a permanent resident, please view information on the official website – Florida-Real.Estate. The website features up-to-date listings for the Florida real estate market. Our competent team is happy to help at any time by providing consultation and helping you in selecting a residence that will match your taste and budget.