Making money in Florida real estate. You’ve heard it’s a great long-term investment, the state is experiencing a population boom, there’s a surging tourism industry, and there are numerous tax incentives for investing in real estate. But is the timing right? And how do you do it successfully?
You may feel it’s best to wait and see what the Florida real estate market does, however, just like blue chip stocks, all market conditions may never register “perfect” enough. That’s because it’s an ever-changing phenomena that can be daily dependent on the whims of the world. But real estate is typically meant to be a long-term investment. In other words, the sooner you start building equity, the more money you will end up with when you are ready to divest.
Here are four different ways growth-minded property owners can take advantage of the Sunshine State’s outstanding investment potential.
Upsizing Your Current Home for Investment Purposes
When it comes to investing in real estate, bigger is usually better. Everything being equal, larger homes are worth more than smaller ones. However, the timing of this scenario is usually not as flexible as shopping for rentals or investment properties because moving entails a major life change for you and your family. While The National Association of Realtors says the average U.S. homeowner sells a home once every nine years, if you live in Florida, and want to take advantage of the state’s accelerated equity valuations, it’s really never too early to think about upsizing.
Typical times to upsize include when you need to accommodate a larger family, when you want to dodge the restrictions of condo living for the independence of a single-family home, and scaling up your living arrangements to match a career uptick. While you don’t need an excuse to start building your equity as soon as possible, these scenarios are nice indicators that it’s a great time to move.
Once you do some number crunching to see if you can handle the additional taxes, utilities, and mortgage payments of the price range of the type of home you desire, and you pinpoint a community that has the amenities you enjoy, enlisting a good real estate agent will help you make it happen. While upsizing may require tightening your belt a it now, it can reap abundant rewards later.
Generate Another Revenue Stream with Income Property
Purchasing and managing rental properties is arguably the most well-known real estate investment method. Owning a rental property provides three different asset-building advantages 1) your personal assets increase as the property gains equity over the years, 2) if holding a mortgage, the purchase of the property is paid for through the rental income, and, 3) the rental income also gives you an immediate additional revenue stream.
Because Florida is a vacation hotspot and has a continuous flow of new incoming residents, short- and long-term rentals, as well as vacation rentals are all very doable. If you already own, or are in a position to buy property suitable to rent—either residentially or commercially—you may be in ready to jump in the game. The Associates Home Loan of Florida says you can be up and running within a few months, if you follow their step-by-step process..
Purchase Investments that Increases in Value Faster than the Stock Market
Florida has long been a great place to look for opportunity for investors wishing to add real estate to their portfolios. and the state’s real estate market can give you returns that are greater than the stock market. You can easily to see the amount of increased equity that your own Florida property has acquired by checking online real estate marketing platforms such as Zillow and Redfin. To be successful, do the research. Look at things like your targeted area’s population growth, zip code demographics, housing market statistics, and the nearest tourist destinations to evaluate suitable purchases.
House Flipping in Florida
House flipping involves purchasing fixer-upper properties to renovate and sell them quickly for a profit, ideally before the first mortgage payment—and interest—is due. Flipping requires significant investment upfront and may have unexpected costs during the process, but it’s a great way to generate a high return on investment in a short period of time; plus, the generated income can be quickly turned around and used for your next flip. Successful flippers have a good eye for design and either the ability to do much of the renovations themselves or have a contractor on hand who can move quickly and stay on budget.
Purchasing Florida real estate can be a great investment strategy. When done right, it can outpace the stock, create revenue streams, and aid in supporting the investor well into the future. As always, consult with your Florida real estate attorney before making any significant property transaction.
When you are ready to purchase your next piece of Florida real estate, you are welcome to contact Florida Bar Board-Certified closing attorneys David E. Klein, Esq. and Guy Rabideau at Rabideauklein.com. They have the expertise and experience you need to ensure that your interests are protected throughout the process. Contact Rabideau Klein to discuss the legal implications of your anticipated Florida property transaction.