Real Estate investment in Florida is a great and exciting topic. Demand to buy Florida housing is always increasing.
The further North from Miami you are going, the more vacant second homes you will find. Miami’s economy is very diversified, but Healthcare is the field that creates most of the jobs in Miami-Dade, Broward, and Palm Beach counties. Real Estate prices were really strong in the past 4 years, and should still rise a little bit, but until when …? If you are a short-term investor, be careful and double-check all your numbers. Buying Real Estate in Florida is easy, but can be tricky!
If you are on the market to find a good long-term real estate investment in Florida, the rental market is for you. Rents held up very well and because of the Healthcare and Retail jobs in South Florida, the renting population will not stop increasing. Buying a single-family home to split and rent out in urban areas is good option as well as apartment buildings. Condos and Townhouses in good school districts like the cities of Southwest Ranches, Cooper City, Davie, Weston is the best way to secure a good rental return. As the population is growing pretty fast, the needs for housing could increase up to 10% in the next 3 years.
Buying Real Estate in Florida requires a few things to be aware of. Don’t leave them aside and think it is going to work! It does not take a PHD to understand these few concepts and procedures.
We already spoke about the current market conditions. Real Estate investment in the rental market is a very good option; flipping houses also, but it requires more knowledge and the purchase is more important.
South Florida is surrounded by miles of coastal paradise … so the weather can be hard on your investment. Strong winds, heavy rains, hurricanes and floods are not uncommon. Having a good home owner insurance at a good rate is so important. There are several criteria that may affect the premium and coverage of your dwelling. Age of the building, condition of the roof, type of construction, number of floors in multi-family buildings, outdated electrical wiring, hurricane protection. So before moving forward in a transaction, make sure you are in contact with a good insurance company and request a quote during the inspection period.
The inspection is the first few days after your offer has been accepted where you can inspect the property to make sure its condition is as expected. This may depend on the type of contract. When making a Real Estate investment in Florida, the inspection is the key to success. Hiring a good home inspector and have them checking the roof, electrical panel and wiring, plumbing, pest, mold, could save your investment.
Speaking about money, when it is about buying real estate in Florida, you must know about the costs. How much does it cost to buy a property in Florida? There are several costs involved and it depends the county where the property is located. As a rule of thumb, you can plan on 1.5% when it is a cash deal, and about 4.5% when there is a mortgage. Always ask your real estate specialist about these costs.