Investing in real estate can be a rewarding experience. But there’s one small catch: you need the knowledge and skill to make lucrative investments. It turns out that Florida is one of the best places to invest in real estate so that this post will cover all the best spots in Florida for your investment in Florida real estate according to Ofirio. We will also consider what makes Florida an attractive location for investment. Keep reading to find out everything you need to know.
Why Invest in Real Estate?
There are many reasons to consider investing in real estate. Asides from the flex that comes with owning a property, you can make predictable returns and build your wealth. The primary reasons to invest include:
- Cash Flow: You can get predictable cash flow by investing in real estate. This cash flow comes through rental income or other real estate ventures.
- Property Appreciation: Your property is bound to appreciate over time. So apart from the rental income, you can always sell the property for more.
- Wealth Building: Real estate investment is one of the safe ways to build wealth. You also build equity when you pay off your mortgage. Better equity gives you leverage to get more properties.
- Inflation Hedge: The demand for real estate goes higher with inflation. So having a property can be a good hedge against inflation.
- Tax Deductions: You can deduct the costs of managing your property from tax payments.
Now let’s get into the reasons that make Florida the best place to invest.
Why Make an Investment in Florida Real Estate?
Before you book a flight to Florida, let’s look at the factors that make the sunshine state a good investment spot. The more people live in a place, the higher the housing demand. It’s as simple as that. According to the US Census Bureau, Florida is the third biggest state by population. It is home to over 21.7 million people, and that population continues to grow daily. Besides, Florida has one of the lowest employment rates in the United States. According to the Bureau of Labor Statistics, the unemployment rate is only 2.8%. This labor force continues to grow every year. Since more people in Florida have jobs, there is a natural demand for more houses.
For the longest time, Florida has had a booming real estate market. That’s because it’s a popular business hub and vacation spot. Looking at indexes for home values, an average Florida house costs $342,000. That’s a 26.7% increase from last year’s price.
It’s not surprising that people want to relax, especially after the pandemic. This new lifestyle favors Florida, which has some of the best getaway spots. Those looking for nature spots, theme parks, or nightlife will find it in Florida. It’s also nice that Florida has a warm climate.
Best Locations to Invest in Florida
Here are some of the best spots for a real estate investment.
Orlando
Orlando is one of the hottest real estate markets in Florida. It is also home to world-famous theme parks like Disney World and Universal Studios. So it’s naturally a big attraction spot for tourists. Orlando also has a lost cost of living and suitable weather. All of these make it a suitable real estate investment location. The median home selling price is $378,000. This price continues to go up, making this location a hotspot. Orlando is an excellent location to invest in real estate that appreciates over time.
Jacksonville
Jacksonville is the hub of entertainment and business. This city is home to many Fortune 500 companies, making it a hot spot for real estate. Jacksonville also has many tourist locations and outdoor attractions. So people come here to work hard and play hard. Jacksonville has a low unemployment rate of 3.5%, and its population continues to grow. These factors have led to increasing demand for real estate. Currently, the median house sale price sits at $281,000. That’s a 19.6% increase compared to the previous year.
Tampa
Tampa is one of the more beautiful cities in Florida. But not only that, this city has many affordable investment properties and a booming economy. These factors make it one of the best investment locations in Florida. The average home price in Tampa is 9% lower than the national average. So it’s a good spot for creating stable cash flow. You’ll also be able to grow equity over time. Tampa’s population is on track to increase in the coming years. So there’s no better time to invest in real estate there.
Miami
This city needs no introduction. Over the years, it has become the center for business, finance, retail, and technology. This trend is bound to continue as more companies move their headquarters to Miami. Miami’s population also makes it the destination for real estate investment The city also has many tourist locations, making it the right place to invest.
Tallahassee
It’s not surprising that Florida’s capital is on this list. This city has some of the best cultural attractions and entertainment centers. Those looking for an adventure will find it here.
Tallahassee’s driving force is its people. Since 2010, there has been an increase in the city’s population. This city also has an unemployment rate of only 3.6%. Both factors have made this location an ideal spot for real estate investment. Currently, the average home price listing is $225,000. This price is on track to increase in the coming year. The average rent price also sits at $1,100. There’s no better time to invest.
Bottom Line
Florida has become a hot spot for real estate investment. That’s all thanks to the growing job market, tourist locations, and increasing population. If you have been considering investing, consider the locations above. However, knowing the best site is not enough. It is crucial to conduct proper research on all properties. That way, you can make the best investment choice.
