The effects of the 2008 recession have begun to dissipate, and with the hopeful prospects of an improved economic situation, the demand for affordable real estate has grown. In Florida, the demand for single-family homes has continued to climb, but many of the real estate searches are for rental properties and not homeownership. Across the state, newly renovated properties are surprisingly affordable, but the demand for leased properties has caused rental rates to rise over 6% in the last year. Real estate investments that address the demand for rental space provide great cash flow, but the continued rise in property values will create a long-term financial benefit.
The Draw to the Sunshine State
Many assume that snowbirds are the only ones headed to the Sunshine State, but the warm and generally dependable pleasant weather is continually attracting the thousands of baby boomers that are retiring each month. The costs of living are also agreeable, as insurance and property tax rates are low. There are also the added benefits of above-average healthcare and no state income tax. There are several areas in high demand for incoming Floridian residents, and if you have a vision like that of Aubrey Ferrao of Gulf Bay, you can easily find a profitable real estate investment opportunity. Although Aubrey Ferrao has revolutionized the real estate landscape in Naples, there are several other trending areas in Florida where you could sink your money.
Located in the “sun-belt” region of Florida, hundreds of thousands of tourists flock to Orlando each year for the beaches, entertainment parks, and world-famous attractions. However, the population of 2.5 million residents is growing, fueled by students, baby boomer retirees, and job seekers that want affordable, cheerful living. The median home price is around $231,000, while rental income is about $1,486 a month. An added benefit is the notoriety by Forbes magazine as the number one best place to buy a home.
Coming in a close second to the densely populated Miami, Tampa Bay boasts a population of more than three million people in its major cities of Clearwater, Largo, St. Petersburg, and Tampa (among others). The job market is thriving, holding job growth rates that are 71% above the national average. It is home to more than 19 companies that have annual revenues that exceed $1 billion. The average rent potential is around $1,485 a month, while the median homeownership cost is about $225,250. Tampa has been listed as having one of the best real estate markets in the country. Investment opportunities include apartment or condo development and affordable homes that can be purchased and rented.
Situated along the eastern coast, this bustling city is located against both banks of the longest river in Florida, the St. Johns River. Over the last decade, the metro area has expanded close to 14%, with over 1.5 million people taking up residence in Jacksonville. It has a world-class healthcare system, with over 20 industry-leading hospitals serving the population. The weather is pleasant year-round, giving the growing professional demographic plenty of time for hobbies and recreational activities when the workweek is through. The average home price is around $189,000, but the rental rates are around $1,409 a month. A three-bedroom home rents for more than the national average. This is definitely an up-and-coming real estate investment location that is sure to yield a profit.
If you have been looking for a solid investment opportunity, these areas are some of the more promising locations in Florida. The climate is just one selling point for the state, but the trends in job growth, property value, and population growth should be enough to help you seal the deal.
Byron Simpson is a qualified business/finance writer expert in investment, debt, credit cards, Passive income, financial updates. He advises in his blog finance cent.