As I mentioned in my previous post Florida is a great state to invest in. Florida has amazing weather throughout the year. It has many beautiful beaches and is a vacation hot spot. Many large Fortune 500 companies have locations in Florida because of the great business climate, excellent networking opportunities with other businesses, low cost of living and beautiful weathers. The cost of land and homes compared with many other states is quite low. In addition, the fact that there is no personal income tax is a big draw for many people. Florida real estate plummeted to drastic lows after the crash in 2008 of the housing bubble. Since the crash prices have begun to rise but are still quite low. This makes it a great place to look at investing in real estate while it is still below market value.
Before the crash of 2008 and the recession there was a huge condo conversion boom in Florida. Apartment buildings were being converted to condos at a breakneck speed. They couldn’t convert the buildings fast enough. Investors were clamor in to get a condo and would be on waiting lists and waiting in unbelievable lines just to get a chance to buy one of these converted condos. When the recession began, so many investors had bought the condos as purely investment opportunities with the intention of flipping them and selling for a profit that the value plummeted since everyone was selling at once.
The result was investors stuck with condos worth much less than they owed on them. Since the value plummeted those years ago these condominiums have become a bargain buy for new investors. There are certainly some considerations when you look at buying a condo as an investment and I will post in more detail on that on a separate post. The values are now so low that you could easily buy a condo for under a $100,000 and rent it for on average $1000 a month. You want to consider the rental prospects in the area you look at since that will impact how much value you get in return. Sometimes you can even find a condominium for $50,000 and be able to rent it for $800 for a month. This is not a bad return on your investment! Condominiums by the beach have even come down in their price. These can be a nice vacation home or rental property to earn some extra income.
As you look for investment properties you will want to look for areas in Florida that have a strong economy. You will want to see a low unemployment rate, strong businesses in the area as well as good schools and or location. All of these factors will play into the overall profit you can get from a rental property. You will also want to make sure once you narrow down the area you are going to buy in that you look for certain things in your investment property. You might be interested in a condominium that has minimal exterior work for you to have to complete and has maintained covered by the condominium association. If you choose a condominium you will want to make sure to read closely the association rules so that you know if there are any restrictions on renting before you buy it. You might also like a home that doesn’t have an association to deal with. If you choose a home you will want to make sure you take into account that you will need to pay to have the yard landscaped.
Keep an eye out for my future posts on investing and businesses in Florida!!