Are you thinking about investing in Florida real estate? Let us tell you something – the only thing hotter than Florida’s weather is the Florida real estate market! And, why is that? Well, because of all the baby boomers, millennials, and gen Zs looking to settle in the Sunshine state. And, because of all the tourists that want to make fulfill another thing from their bucket list, that is, to visit Florida. You get the idea – the demand for homes for rent has never been higher! So, if you want to have a steady source of income every month, or if you want to build a real estate business, this may be one of the best states to do that.
However, we would be lying if we said that investing in Florida comes only with pros (advantages). There are also some cons (disadvantages)! And, that will be our topic of the day. That is, today, we will talk about all the pros and cons of investing in Florida real estate. So, if this is something that interests you, well, just keep on reading.
Pro: A Growing Population
Currently, there are 21,22 million people living in Florida. And, according to experts, that number will grow by 906 people each day. Of all those people, 2,594,967 are renters. So, you get the idea – they need a place to rent. Even though there are already a lot of properties for rent in Florida, the demand for them will never cease.
A growing population is a very good reason to think about investing in Florida. So, learn how to invest in real estate now! Once you do, and once you own your investment property, you will be able to find renters in no time. Students, young professionals, and even retirees will be the first ones to knock on your doors.
Moreover, have in mind that favorable taxes, a strong economy, and a good quality of life attract many business owners too! So, if you don’t want to be a ‘typical’ landlord, you can also invest in commercial property and rent it to business owners.
Pro: Strong Renter’s Market
Another great reason to start thinking about investing in Florida real estate is the strong renter’s market! This is a place to rent out a home (either a house or an apartment) or a commercial property if you want to charge more than the national average. Namely, rents are approximately 9% higher here than in any other state in America. This applies to both residential and commercial rents.
But, people don’t seem to mind those high prices. We asked müv | Trusted Florida movers whether people are still moving to Florida despite those prices, and the answer was a clear YES. They are moving to Orlando, Key Biscayne, Surfside, Southwest Ranches, Miami, Parkland, and other expensive cities every day.
Pro: Quality of Life for Residents (and Tourists)
The Sunshine State will always be on everybody’s bucket list. People will always want to move there because of the strong economy, available jobs, top-notch healthcare systems, great schools, and, of course, because of the nice weather all year long.
Moreover, people will always want to travel to Florida because of the entertainment options it provides. It doesn’t matter whether someone wants to relax on the beach of a five-star resort, have fun at Disneyland and Universal, or do some adrenaline-evoking activities in the wilderness, Florida has it all.
Be sure that someone will always need a place to stay in Florida. So, just like previously mentioned, start your real estate career now if you want to have a steady income for the rest of your life.
Well, this one just goes without saying – one of the biggest cons of investing in Florida real estate is having to be a landlord. This ‘job’ comes with many responsibilities – meeting the people who want to move in, checking on them and on the property, fixing any problems that occurred, making sure everything is working properly, etc. Moreover, if you plan on renting the property to tourists, you will also have to be there constantly to welcome them, show them around, clean up after everybody, etc.
Moreover, if you decide to invest in a rental property in Orlando, for example, you will also have to move there. And, why is that? Well, in metropolitan cities such as Orlando, tourists are flocking. Since there is so much to do and see here, they just keep on coming. So, if you want to rent out to all of them, you will have to be somewhere near to do all of things mentioned above. But, you probably know that. What you don’t know is how to move there, right? Well, it is easy – just find some people you can rely on to help you move – professional movers, for instance. They can help you move in no time, or, just in time to welcome your new renters.
Con: Price of Real Estate in Florida
Everything that has pros, must have cons as well. So, yes, even though there are many pros of investing in Florida real estate, there are also some cons. And, one of those cons is the price of real estate properties in Florida. Both residential and commercial properties have high prices when compared to other states.
For instance, the medium home value of homes in Florida is around $397,280. Or, approximately $200 per square foot. But, keep in mind that if you want to buy an investment property in some metropolitan city such as Orlando, Miami, or Tampa, the price will be a lot higher. Moreover, the price of homes will also vary depending on the neighborhood – for instance, if you want to buy a home in the center of Miami, you will need approximately 30% more funds than you would need for a home in some suburb of Miami.
However, there is a silver lining to all of this – more expensive properties always lead to more expensive rents! That is something all online real estate courses will tell you. So, if you have enough money in your investment budget, this is not really a con!
As you have seen, there are many pros and cons of investing in Florida real estate. We mentioned just a couple of the most important ones, but, be sure to do your research too! Moreover, be sure to assess your finances and your lifestyle because investing doesn’t come cheap or easy.