Real estate is one of the best ways to make money, but the location will determine how well your investment will fair. Florida is a favorite spot for most US tourists, mostly because of its sandy beaches and other exciting vacation destinations. Aside from being a hotspot for tourists from all parts of the world, it also has attractive real estate investment opportunities. In fact, it is one of the best places worldwide to invest in real estate for so many reasons.
If you are contemplating investing in Florida’s real estate, here are a few healthy reasons to ponder on.
Florida boasts a burgeoning economy that has significantly impacted the housing market. It is a top performer in the country, and USA Today even ranked it fifth for “States with Fastest-Growing Economies”. Even after the 2007/8 economic recession, the economy slowly grew and recovered in the preceding years. This populous state has a 1.8% 1-year population growth, meaning that the more it grows, the higher the demand for housing increases. Among the cities in Florida with the best retail real estate property, Miami stands out while Tampa/St Petersburg has a skyrocketing real estate market for 2020.
No one wants to start a business and end up losing most of their income in tax payments. While hefty taxes are one of the reasons a lot of people are reluctant with investing in real estate, Florida is one of the most tax-friendly states to invest in. Out of seven, Florida is one of the states with no personal income tax. So, investors don’t have to worry about a huge potential tax burden after investing.
When Inc.com and Kiplinger were rating the most tax-friendly states, they both ranked Florida in the first position. According to Tax Foundation, Florida ranks first for the best tax climate in the southeast and fourth in the whole of the US. As a result, 20% of export businesses in the US are located here.
Favorable Vacancy Rates
When it comes to commercial real estate, favorable vacancy rates are a sign of healthy demand in any given location. This is the case with Florida, where most of the cities have positive vacancy rates. For instance, in the fourth quarter of 2019, Miami had a vacancy rate of 4.5%. The best piece of news is that the rates have been falling, which translates to an increase in demand for more and better housing.
Low Unemployment Rate
A low employment rate means that there is no job creation and this is an unhealthy sign of growth. Florida is a financially stable state with a high employment rate, all because of a steadily growing economy. In 2010, the employment rate flopped badly, unemployment was at an 11.2% rate, but it has declined since then up to a solid 3.2%. As of now, Florida’s unemployment rate is 4% below the national average, with a 0.1% year-over-year decrease. In the country, Florida comes 5th in high-tech employment.
Affordable Mortgage Rates
Mortgage can be overwhelming, especially when you have other family-related financial responsibilities. This is why when looking to buy real estate property, you should check if it will be affordable to you given your income and other expenses. It is important to note that the interest could grow higher than the amount you will end up paying for the property. But the good news is that the mortgage rates in Florida are quite affordable, so you don’t have to worry about paying ridiculously high rates. Given different options, choose the best suitable one for you and make sure to consult your financial advisor about it.
Quality Of Life
Everyone wants a quality life for their family. From education to housing, security, and everything in between. Florida is among the sunniest states in the country all year long. And with great weather and pristine beaches, people end up spending most of their time outside having fun while enjoying the warm weather. Also, when the quality of education is high, then more potential residents will be interested in a location. Automatically, people prioritize settling in Florida because they are guaranteed quality education for their kids. It also has some of the safest neighborhoods when compared to most states within the country. All these factors influence the quality of life, which makes it favorable to live and spent money here.
Population Growth Rate
Population growth is directly proportional to the demand for housing. Florida has a year-on-year population growth of 1.6% and in 2017, it had the second-highest population growth, falling behind Texas. It has a population of 21 million and comes in the third position for the most populous states in the US. Florida’s population has continued to grow, attracting more investors in the real estate sector. So as long as the population rate in Florida remains on the rise, it is a suitable location for real estate investors.
Strong tourism is one of the reasons why real estate investors are attracted to Florida. The booming tourism in Florida has been positively impacting Florida’s economy. In the whole of the US, Florida is the most popular tourist destination. In fact, an estimated 32.2 million tourists choose Florida as their holiday destination. Healthy tourism means that there will be a lot of visitors looking for holiday rentals which often offer incredible potential for return.
There are more than enough reasons to invest in Florida’s real estate. Every one of the factors to consider when investing in real estate are linked in one way or another, so look for a balance in everything. Choose a city of your choice, and whether you want to invest in commercial or residential real estate, Florida has its unique privileges. You would also be better off with a real estate expert by yourself because real estate can be tricky. This would make investing painless and what’s more, you will have all the advice you need to move faster. It will save you resources you would waste exploring different options.