When you are purchasing real estate, there are always issues to consider. If you plan on living in a home, it should meet your needs. As an investor, the property should fit with your overall strategy. In both cases, you will want to acquire a structure that is expected to appreciate in value and will provide an excellent return. Here is why single-family homes may be a good investment right now:
Wide-Open Spaces are a Top Selling Point
When the global pandemic hit the U.S., no one could have predicted its impact on some densely-populated cities and states. As we have learned more about how COVID-19 is spread, many buyers and renters are opting for single-family homes over units in condominiums and apartment buildings. According to reports, single-family homes were popular before the outbreak. Now, with people wanting to move away from affected areas, these properties are even more in demand. Today’s buyers are attracted to the spaciousness of extra square footage and open yards. Those looking to social distance are gravitating towards these properties. Additionally, people with children want more room for their families both now and in the long-term. Features such as large backyards, pools, and expansive floor plans are all in high demand.
South Florida is a Popular Single-Family Home Market
According to Mansion Global, Palm Beach and other South Florida communities are popular markets for both rental and residential single-family home sales. Interested tenants and buyers are looking for exclusive, luxury properties for their families with sizeable yards. Amenities such as swimming pools, private beach access, tennis courts, and outdoor entertainment spaces appeal to renters and homebuyers. Palm Beach is also a favorite relocation destination for east coast transplants from states such as New York, New Jersey, and Connecticut. Recently, the SALT tax motivated record numbers of these states’ wealthier residents to relocate to sunny Palm Beach to benefit from Florida’s better property tax laws and lack of a state income tax.
Millennials are Leasing Single-Family Homes
Under the present conditions, millennials are looking to leave urban environments where apartment and condominium building properties are more common, in favor of spacious homes in suburban neighborhoods. Not only are these smaller dwellings more confined and less autonomous, but they also don’t allow residents many ways to socially distance. Some millennials are opting to rent rather than purchase. With the uncertainty of the job market, some millennials may feel more comfortable leasing a home until they are in a more stable position. In this circumstance, investors wanting to buy single-family homes can earn rental income from members of this group as they transition into new markets.
At Rabideau Klein, we have extensive experience handling real estate transactions in the Town of Palm Beach. David E. Klein Esq. and Guy Rabideau, Esq. are Florida Bar Board-Certified Real Estate Attorneys with the experience you need to manage all legal aspects of your Palm Beach real estate property transaction. Contact Rabideau Klein today to discuss your real estate legal needs.