Florida remains one of the most attractive regions in the US. Tourists are attracted here by spacious beaches and climate, thanks to which property in Florida is always in demand. The housing stock in the state is also purchased for seasonal holidays or moving to permanent residence.
CONTENTS
- Benefits of overseas property in Florida as an investment
- Real estate market in numbers
- Basic property investment strategies for foreigners in Florida
- Renting out real estate through a concierge service
- What to consider when planning an investment
Benefits of overseas property in Florida as an investment
There are several reasons to invest in property in this state:
- Infrastructure development. Florida is the third largest state in the US. The region receives income not only from the tourism sector. Other important sectors are local agriculture and international trade. Florida is home to the largest resort in the US, Miami. It is one of the twenty cities in the country with the highest level of GDP. The resilience of the state's economy contributes to a high quality of life that attracts foreigners.
- Return on investment. It consists of two aspects: capitalization of the cost of housing and rental rates. In popular resort destinations, apartments in Florida are always in demand for rent and their sale price is growing.
- Large selection of properties. The spacious territory of the state allows for active development, which ensures buyers a great choice of housing options including both finished homes and off-plan units. For sale are various types of properties, from compact studio apartments or student housing in condominiums to luxurious mansions and villas.
- Low taxes. In Florida, there is no personal income tax, which makes the state attractive for relocation.
- Affordable prices. If you compare Florida real estate with New York housing stock, you can see that the latter is much more expensive. However, you can rent seaside housing at the same price as in New York.
Analysts suggest that over the next decade, the demand for real estate in Florida will continue to grow, which is caused by increased migration. Move-in ready housing ready will remain the most popular. High demand and low supply keep ROI for the state's housing high.
Real estate market in numbers
2021 has seen an increase in sales and demand for housing in Florida, which has caused an increase in prices. Interest in family houses overtook the demand for apartments. The average cost of housing in Florida by mid-2022 has reached $378,000. Over the past year, prices rose by 33.1%. If we talk about numbers over the past five years, then the increase in the cost of housing in Florida has reached 78%. The number of offers in residential buildings in April 2022 decreased by 2%.
ABC Action News notes the highest rent growth in Miami, Tampa and Orlando. These cities have some of the highest rates in the country. For instance, in Miami, the average rental rate for a three-bedroom house is about $3,700 per month. This indicates the high potential of investment property used for rent.
Basic property investment strategies for foreigners in Florida
To generate income, you can use three main strategies:
- Buy off-plan housing to sell it when it is completed. By the time the house is built, apartments will be steadily rising in price.
- Purchase buy-to-let property.
- Live-in flips. This is another popular scheme in the United States, when you buy a housing unit that needs to be renovated. After the repair, it looks more attractive in the eyes of buyers and is sold at a higher price.
The investment threshold depends on the chosen strategy. A variety of offers on the market allows you to choose a housing unit for any budget.
Renting out real estate through a concierge service
In the US, many real estate companies offer property management services. This allows the owner to receive a stable income while not staying in the country. Typically, such a service is paid at a rate of 10% of the income from rental housing, but the exact rates depend on what management company you choose. Its specialists fully take care of all the issues associated with finding tenants and monitoring the state of the property.
What to consider when planning an investment
Foreign real estate markets require detailed study when it comes to choosing a property and making sure that your property transaction is legally safe. Risks when investing in housing stock occur in every country, but they can be reduced if you avoid typical mistakes that include:
- Errors in calculations. Often, management companies demonstrate a theoretically possible profit, provided that the housing is not empty during the year. This percentage does not deduct the cost of utility bills, intermediary services, taxes. As a result, the owner receives much less than the 13-15% indicated in the theory.
- Saving on the quality of housing. Tenants prefer comfortable housing. If it does not correspond to generally accepted concepts of comfort, then the profit will be lower. An apartment with an average design and its state will find its tenants, but at a reduced price.
Our professional brokers will help you choose an ideal property matching your requirements and investment goals. On our website, you can find the latest offers from trusted real estate agencies in Florida and developers. Find your home in the Sunshine State!