With a growing population of high-flying residents, not to mention the millions of fun-loving tourists that throng the state every year, there is no better time to invest in Florida’s real estate market than now.
Whether you want to buy rental property or pump your money in a vacation home, investing in Florida’s real estate market offers several benefits to prospective investors. Here are top reasons why you should dump your dress shoes for Florida’s flip flops:
Florida is one of the states that enjoys lower home prices than the national average. The availability of lots of undeveloped land in the state contributes to the lower prices. Home prices in Florida remain stable as the rest of the country experiences a sharp increase. This makes it the right time to invest in real estate before the prices go up again.
You know you live in Florida if you feel that no other grocery store compares to Publix. Fortunately, the real estate market is not limited thanks to the high inventory in the Sunshine State. Whether you want to buy your dream home or you want to invest in commercial property, Florida offers a variety of properties to fit your budget.
Low Mortgage Rates
One of the easiest ways to buy a home in Florida is through a mortgage. Despite the commitment to pay for 20-30 years, the interest rates on mortgages are lower than that on personal loans. According to Business Insider, the average interest rate for a 30-year fixed mortgage is 3%. Florida mortgage and refinance rates are as low as 2.37%.
The state of Florida offers various financial incentives to attract real estate investors in a bid to spur economic development in the region. These incentives may include state-budgeted program expenditures, grants, investment models and investment loans. Other financial incentives include tax refunds of up to $3,000 for every new job created in the state. First-time homebuyers enjoy up to $8,000 in tax credits.
Favorable Tax Laws
Florida is one of the states that offer several tax benefits to residents and investors, as a result creating a conducive environment for doing business. For instance, residents of Florida do not have to pay individual income tax. Moreover, the state does not levy taxes on sole-proprietorships and partnerships. Setting up an LLC will also help you avoid income tax. However, your LLC should not be set up as a corporation to avoid paying state tax.
Economic Growth and Stability
The economy of Florida is growing at a tremendous rate thanks to the influx of tourists and the emergence of new businesses. The ripple effects of long-term economic growth and stability will certainly have a positive impact in the real-estate market. More people will now be able to afford to take up mortgages and buy properties. Investing in Florida’s real estate will ensure that you reap the benefits of this growth and economic stability.
Ready Rental Market
The real estate market can sometimes be unpredictable. You may invest your money in a rental house only for it to stay for weeks or even months without finding a tenant. Fortunately, this is not the case in Florida. The rental market in Florida is robust with demand for affordable housing on the increase.
Strong Job Market
Given that Florida has a strong economic outlook, many businesses are setting up base in the area. In fact, the state hosts up to 19 Fortune 500 companies with many more businesses exploring their options. This translates to more job opportunities, which in turn affects the demand for housing and real estate.
The population in Florida is ever-growing and as a result, this has triggered an increase in the demand for housing and accommodation. Besides, Florida consists of a diverse blend of job seekers, young professionals, baby boomers, retirees and foreign investors, making it a great place to live and work, and above all, a lucrative destination for real estate investors.
From the white sandy beaches to world-class parks to near-perfect weather, Florida is the ideal destination to live and work. The idyllic and tranquil lifestyle is the main reason why so many people choose to migrate to Florida, further increasing the demand for housing and office space. With this in mind, it makes a lot of sense to invest in Florida’s real estate.
Well, if you notice that your drawer is full of bathing suits with only one sweatshirt and you only wear socks when bowling, then know that you are ready to invest in Florida real estate. Take the next step and buy your rental property or vacation home as soon as possible for a great return on investment.