Florida Investment Property 每 Why Investing is a Wise Decision
There are many reasons to purchase investment property in Florida, the foremost being value appreciation. Property values generally rise while debt decreases; making real estate purchases a good investment. Every year since 1968, the national median home price has risen. Usually, home values increase at around the rate of inflation, with a greater increase possible. In recent years, median prices have increased by as much as 9 percent, making purchasing investment property in Florida a wise long term investment. Building equity is an excellent reason to purchase investment property in Florida.
Equity grows over time for owners while renters don't see any return on their money. Purchasing property forces you to save, making you a wise investor without realizing it. Owning investment property in one Florida location may make it possible for you to expand, purchasing a second and third property as rental profits increase.
Owning investment property in Florida gives you borrowing power, the ability to use your property equity to borrow funds for your own use, or for further investment. Owning investment property in Florida gives you a sense of stability, not only for the consistent rental income, but for the potential of it becoming a regular seasonal vacation home for your family. Imagine the pleasure and ease of knowing where you are going to vacation, there＊s no need to decide on location and try to compete to make reservations, with prices changing every year. There is stability on owning an investment property in Florida that can also be used as a family vacation resort.
Why the Interest in Florida Investment Property?
Considering the myriad of investment property locations on the market, Florida investment property is one of the most desirable. Home to 11 of the country's 100 fastest-growing counties, a Florida investment property has high potential as a profit-maker, unlike most other areas. Port St. Lucie, Miramar and Cape Coral are the fastest growing cities in Florida. It＊s unlikely you will make a mistake investing in Florida real estate considering the vast number of tourists and new residents flocking to the land of sun and surf. The most difficult decision to make will be which location in Florida to purchase. Good investments abound in each area of the state, from Miami in the south to Clearwater on the gulf coast, going east to Daytona Beach and north to the panhandle. Selecting a location depends on your goals for purchasing Florida investment property. Carefully consider what you intend to do with your Florida investment property. Will your purchase be used mainly as a rental property for vacationers? Do you intend to have access to the property during certain seasons? Or is your goal rental of the property to local tenants? Some of these questions will help you in narrowing down your search. Once you have determined whether your Florida investment property will be used primarily for vacationers or for local renters, and whether you intend on using it as a vacation resort yourself, it is easier to choose the location.
Florida Investment Property Locations
There are so many location options of investment property in Florida, making it difficult to select just the right location. Let＊s start from the top! Do you desire a beachfront location, or one close to the coast, or would you rather select property in a town setting. Tourist area or settled community, inland or beachside? Asking these questions helps you narrow down your search. Each area where an investment property in Florida is located has its own flavor, its own attractions. Let＊s start with the Miami area. Miami is located in the southeastern corner of Florida and Miami Beach is a seven mile long island known as America＊s Riviera. Home appreciation rate in the Miami area is about 11% with the median home price around $240,000. There are diverse offerings of single family homes, ocean front property and ocean view condominiums. Of course condo and home prices are offered in a vast range, with upscale areas bringing in up to $5 million. Condos and town homes may be cheaper, depending on location, but with price escalation and population density, even there it may be hard to find a bargain. Miami offers beautiful beaches with perennial sunshine but traffic congestion and the increasing population boom may be a deterrent to some. Just forty miles north of Miami, lies Boca Raton with five miles of coastline and gorgeous beaches. Appreciation rate here is around 11%. Clearwater, on the west coast of Florida borders Clearwater Harbor and the Gulf of Mexico. Indian Shores is a small historic community offering condos, gulf front property and Intracoastal Waterway homes and town homes. The appreciation rate for investment property in Florida, Clearwater is about 9%.
Investment Property in Florida 每 Daytona Beach, Jacksonville and Destin Moving north in our search for investment property in Florida, let＊s take a look at the Daytona Beach area. Daytona is known as a spring break and family playground on Florida＊s east coast about 50 miles northeast of Orlando. Homes prices are surprisingly reasonable here in comparison with other popular Florida beach locations. Appreciation is about 10% with homes starting as low as $80,000. A large variety of housing choices exist, everything from inland or waterfront property, to townhouses and single family homes, ocean front or inland. Older homes abound but there are also several new upscale building projects. Let＊s take a look further north at Jacksonville. Jacksonville is known as Florida＊s River City due to the ever-present St. John＊s River which flows through the city, ponds and lakes. A modestly priced investment property in Florida can be found here with a range from $60,000 to several million. Appreciation is around 9% with continual growing home construction. Unique to Jacksonville is its diverse neighborhoods and building styles. Destin is located in the Emerald Coast of Florida, sitting on the Gulf of Mexico. It is just south of Alabama and was recently voted as having the best beaches in the US. Destin boasts great seafood, and excellent golfing and fishing. Home appreciation here is around 12% with the median home price about $165,000. Condos and townhouses here begin at $100,000 and can go upwards in the millions for waterfront property.
Investment Property in Florida 每 Attractive Tourist Areas
Let＊s play a little word association. I＊ll say Florida and chances are the majority of people will say Walt Disney World, or something relating to the Orlando area. Orlando has a thriving tourist economy that attracts close to thirty five million visitors each year. Real estate is booming here with the median price taking a dramatic jump from $166,000 to $200,000, an appreciation of 27%, making investing near Orlando a great venture. Conway Belle Isle, east Orange County, Maitland/Winter Park and northwest Orange County have seen the most dramatic property value increases. There is a strong job market here without forecasts of a downturn, keeping prices strong. There are a large variety of properties to choose from, including starter homes, modest cottages, older homes and impressive new developments. Orlando is called the City Beautiful and owes part of that title to its cleanliness, newness and innovation and variety of lakes and nearby attractions. Whether you are considering investment property in Florida as a rental for locals, as a tourist rental or to rent and use yourself, Orlando is an excellent choice in location. Consider the varied options of attractions in the Orlando area. Walt Disney World would be foremost as a draw card, followed by Sea World, and Universal Studios. But along with these well-known attractions, a plethora of other hot spots exist. Wet-N-Wild draws a huge number of the sizzling summer crowd, a great place to cool down on a scorching Florida summer day. Kennedy Space Center makes a great day trip as well as Cocoa Beach, home of Ron Jon＊s Surf Shop and Daytona Beach, a world famous family and spring break destination.
Investment Property in Florida 每 Locations near Disney World
Having established that owning investment property near Orlando would be a wise investment decision, the search now begins for a specific location. Disney World, Sea World and Universal Studios are located on the south side of Orlando. Condos, town homes and single family homes are commonly purchased for investment purchase in this area. Closest to the Disney area is the community of Kissimmee, Florida. Kissimmee was a sleepy cow town just a decade ago. It is now booming with tourist activity. A quaint downtown area still exists with a few cattle ranches on the outskirts but generally the flavor of Kissimmee now reflects its large tourist population. Close to Disney, within 30 to 45 minutes, lies the lesser-known town of Davenport, Florida. Surrounded by orange groves, it gives you the feel of old rural Florida, but is close enough to the major attractions to make this an attractive investment option. Looking to get into a ground floor investment opportunity? Bimimi Bay Resort, a brand new town home resort development is now offering purchase opportunities. The many amenities in the planning stages include a resort pool, 2 movie theatres, a major restaurant chain, club house, lazy river, food court and many others. For the price of principal, interest, taxes and insurance, the owner has the many advantages of using the property for a minimum rate while vacationing and letting Bimimi Bay take care of all the headaches of rental during the year, still receiving a reliable monthly income. It＊s a no lose deal for investors.
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