Florida Investment Property

 

Many people want to invest but wonder what type of Florida investment property to buy.  The first step is to know the purpose of your purchase.  If it is for vacations and you will spend only a few weeks there each year then it is important to rent the property out in your absence and purchase in an area specifically for short term rentals (less than a 6 month rental is considered short term).  It is important to get a specialized Florida investment advisor as there are rules about licensing in some areas and an advisor can inform you about this and protect you against fraud. 

When you have decided on the area, what kind of property is best?   Houses or condos?   Many people opt for houses.  The best size of property can vary but a 3 bedroom house proves to be most popular than the larger 4 bedroom house.  They are cheaper to buy and maintain but if a good priced 4 bedroom house becomes available don’t let this stop you from buying.  There is a market for bigger houses but they are pricier to purchase and maintain. 

Golfing communities prove to be good Florida investment properties as you are homing in on a niche market and therefore easier to rent, but are again pricier to buy.

Over time, the bottom line seems to be the same as smaller houses have smaller maintenance costs and give less rental income but larger houses have bigger expenses which take away from the higher rental income.  Affordability and personal taste are the key factors it seems. 

However, the choice is yours if you do not plan to rent the property.  Florida investment homes that are pre-owned are generally easier to buy, better value and can close faster.  Issues with construction like noise and dirt pollution are not an issue as they are usually situated in well established areas making it better for the market value and your tenants.  A pre-owned home value will appreciate quicker than new build property because of the surrounding construction in the new area.
However, some people favor a new house due to flexibility of choosing the interior such as furnishings, floor plans and color schemes.

There are many other things to think about when purchasing.  Property management, taxes, financing, immigration, exchange rates, Florida real estate licensing and medical bills (high medical insurance costs in the US) should be given careful consideration.

Regarding financing, there are benefits in having a US mortgage in that your rental income will be paid in US dollars and it is best to pay your mortgage in US dollars as well.  If all transactions are in US dollars, it is best as it avoids any exchange rates.

Florida is an extremely popular place to invest and the main investors are British, Americans and Canadians.  Popular areas include Sarasota, Orlando, St Petersburg, Central Florida and Tampa Bay.  But, wherever you purchase your Florida investment property remember to think thoroughly about the area and to use trusted advisors and you’ll be well on your way to an investment for life.
 

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