Why should you want to invest in Florida?
Historically, especially in Florida, Real Estate has been an ever growing sector and has attracted tens of thousands foreigner investors, as well as locals. In today’s market, opportunities for investors have become even more interesting with a large inventory of foreclosed properties, low prices, growing demand and the skilled investor can -and we believe- should, take a closer look in considering investing in Florida’s Real Estate market.
The reason for this: the numbers and the environment, both physical environment and, even more important, the business environment – the United States of America are a healthy business environment, where laws are clear and bureaucracy is simple, and taxes are at a fair level. These are facts. There is no going around it.
Our company provides a unique advantage to our clients navigating the intricacies of Florida real estate investment by exploiting our experience and extensive knowledge of the Florida real estate market. Our client’s investments in Florida are safe, lawful, secure and conceived with integrity. The pleasant climate, palm trees, year-round blooming flowers, endless sandy beaches, reasonably priced real estate continues to attract tourist, retirees and new residents to the Sunshine State. Florida is a home to many of the world’s best golf courses. While Florida has long been one of the fastest growing states in the USA, we feel the time is better now than ever to invest in the State, because:
- Florida Property values continue to grow.
- Rents are stable with a high monthly rent to property value ratio, giving you an excellent return on the investment.
- Florida is number Four on the list of states with the largest number of foreclosures in the country giving excellent opportunities to buy properties for pennies on the dollar.
- As a result of the “sub-prime mortgage meltdown” banks are more stringent with lending practices making it more difficult, even for people with good credit to get a home loan. More people with foreclosures on record means even less people qualifying for loans, which results in more people looking for homes to rent.
- Demographics favor a continued increase in migration to the State for retirees from cold weather areas. Near-retirees from the Northeast and Midwest are jumping in. “They are flying down and grabbing something now, arranging to rent it out, and going back up North,” says Rhonda Gustitus of Keller Williams Realty. “They’ll be back down in two or three years to live here themselves.”
- No state tax for individuals and most of the business structures in the state make Florida an ideal area for entrepreneurial activity
- The state is a gateway to South America and Brazil’s largest US trading partner. Major changes done to the Panama Canal recently now allows large container ships to reach Florida, making it an easy stopping point for distribution of imports for Eastern Seaboard. Major intermodal expansion is being planned in Central Florida.
- The State remains one of the premier tourist destinations in the country.
- In 3rd quarter of 2015, Sarasota/Bradenton rate of occupancy landed at 97.2%, a healthy rate given Sarasota/Bradenton is enduring a supply wave. Turning to pricing, effective rents jumped 2.4% quarter-over-quarter. As such, rents were up 8.9% annually, a post-recession high.
Sarasota Real Estate Market Sets Records in 2015 reports Ilene Denton in Sarasota Magazine on the red-hot now real estate market:
- 6,000 new homes … have been permitted in the northeast section of Venice from Laurel Road down to Border Road, are forecast to be built “in the next three, four or 10 years, depending on the market,” says Venice city manager Ed Lavallee.
- Meanwhile, existing home sales are robust. “With low inventory and great interest rates, properties are moving very fast,” says Cindy Esselburn of Re/Max Alliance Group and outgoing president of the Venice Board of Realtors. “It is definitely a sellers’ market. Baby boomers are driving the market…”
- Prices have risen, too: Through October /2015/, the average sale price was $262,161, more than $44,000 above the average sale price over the same time period in 2014. And Esselburn cautions that these numbers do not reflect homes sold outside of the MLS, such as builder sales of new products.
- Builders are tearing down older homes and building a new wave of modern homes.
“This is a result of a great new product in a growing market,” Pat Neal from Neal Communities says. That growth is key for builders. This time around, builders say they’re not taking it for granted, because they know this is a limited time opportunity. Neal said last year his company will likely tail off its construction activity in about 2021 as the last of the baby boomer generation retires.
Sarasota, FL is #14 in the Best Places to live in the United States according to Realestate.usnews.com:
“Warm temperatures year-round, award-winning beaches and a thriving arts and cultural scene have made Sarasota a go-to place for retirees and families, not to mention a handful of celebrities (including Stephen King and Rosie O’Donnell). This southwest Florida city, which is about an hour from Tampa and two hours from Orlando, continues to attract new residents with great restaurants and plenty of shopping options.”
Florida’s Market is ripe for International Investors
Since the housing market recession started turning around, foreign investment in Florida real estate has been booming based on reports from the National Association of Realtors. According to their Profile of International Buyers 2015 Report:
- Florida is one of the major U.S. destinations of international reals estate buyers.
- Approximately 25% of foreign home buyers purchasing U.S. property buy Florida properties
- International unit sales totaled 44,000 properties in 2015 (12% of Florida’s residential market).
- The dollar volume of international sales totaled $23.7 billion (24% of Florida’s residential volume of sales, compared to 19% a year ago).
Residential real estate in Nevada and Arizona has drawn significant overseas attention, but Florida has seen the greatest economic impact, despite having the highest rate of foreclosure in the nation.