There are plenty of attractive places to invest in real estate in the United States, with many of the Southern states coming to mind. Texas, Georgia, and North Carolina all have some great deals just waiting to be scooped up. However, if you’re thinking about investing in real estate, you may want to consider Florida. The state attracts many out of state buyers along with international investors, which makes the Florida real estate market potentially lucrative. Here’s a look at five things you need to know about investing in Florida real estate.
1. The Recession Took Its Toll
When the housing boom occurred, developers investing in Florida real estate quickly converted thousands of apartments into condos. The Recession led to less construction in Florida, and this coupled with increasing rental demand has led to a rental property owner’s market.
2. Rent is Rising Steadily
Many of the major counties in Florida have seen the average apartment rental rate rise over 5% from this time last year. Miami-Dade County’s average apartment rent was up 6%, with Palm Beach County and Broward County’s rent rising 8% each. This is part of what makes much of the South Florida real estate market such an interesting investment opportunity.
3. Being a Landlord Can Be Very Lucrative
With rental rates being so high, landlords have been put in a strong position. Vacancy rates are very low, giving landlords a firm control of the marketplace. For many investors in the Florida real estate market, this has led to a major shift in goals. Instead of fixing and flipping houses, many are choosing to rent out their investment properties and pay off their home’s mortgage – which can be done with such high rent prices.
4. There is Plenty of Foreign Investment
As mentioned in the opening, foreign investment has been extremely popular in the state of Florida for many decades. South Americans, Canadians, and Europeans all have invested heavily in the Florida housing market. According to JF Law Firm, Florida has the highest number of foreign real estate investors in the USA. Over 48% of those foreign investors put their money into rental properties or a mix of vacation homes and rental properties. It’s the ability to mix investment with leisure that draws so many to the Florida real estate market, with over ⅓ of the total condo sales in Miami attributed to foreign investors.
5. Orlando, Fort Lauderdale, and Cape Coral are Hot
And when we say hot, we’re not just talking about temperature. According to a new report from Forbes, the Orlando, Fort Lauderdale, and Cape Coral markets offer the most ideal conditions for real estate investors in 2016. Each city appeared in a top ten list of best markets for investors, with Texas being the only state with more prominent cities (Austin, San Antonio, and Dallas).
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