Is investing in Florida a good decision?
Undoubtedly being one of America’s famous tourist destinations, Florida also earns a top-spot for investment prospects. With a potent mix of retirees, teenagers, employees, and employers, Florida is a dreamland for investors. It has seen steady growth in economic development as the price of a property is gradually rising year after year.
But does this mean that investors should go all in and trust the local market to be as beneficial in the future as it is right now? Making investments is not that simple. Florida might be looking like a very good investment prospect right now, but how you invest will make a huge difference in the coming years.
Understanding the Market
Florida can be divided into 5 different areas, namely; northwest, southeast, northeast, central, and southwest Florida. Before pouring any sum of money in any of the following areas, you have to determine their current value and estimate their value in the coming future.
● Northwest Florida:
Prices in this area tend to be a little lower as compared to the rest as it is a little far away from most common tourist spots. However, if someone wants a quiet and gentler place to stay, the north offers the best investment.
● Southeast Florida:
This part of Florida includes some of the priciest properties in all of America. Encompassing Miami and Palm Beach, it has a lot of multi-million dollar homes and villas. However, it is still possible to get good deals on apartments and condos and benefit from rents.
● Northeast and Central Florida:
With tourist attractions such a Disney, Sea World and Universal, central Florida is the hottest market in the region yielding returns up to 8-12%. With a massive influx of tourists and major development in the area, this might be the best place to invest in all of Florida.
● Southwest Florida:
Boasting beautiful beaches, the southwest part of Florida has strong rental potential as the majority of the upper class of Florida lives in this region.
With each region providing unique benefits to investors, there are a lot if things you have to consider before coming up with a decision. Before reaching any hasty conclusions, you can get help from NRIA as they guide investors and educate them about the current market trends in Florida.
Reasons to Invest In Florida
Making investments should not be taken easily, and in addition to spending your money, you should also spend some time doing research. Florida is heaven for investors right now, but it is imperative that you understand the reason why so that you can come up with a plan for the future.
1. Thriving Economy
According to a report by the Gross Domestic Product by State, Fourth Quarter and Annual 2018, Florida ranked at number four, contributing to a GDP of 5.10% in the USA. With such a massive influx in the economy and the GDP expected to show a further growth of 3% in 2020, Florida’s investment future is secure.
2. Job Opportunities
Job opportunities play a very vital part in building the economy and the demand for property. As more and more people move to Florida, there is more chance for investors to make profitable returns in a short period of time.
3. Growing Population
Everyone knows that a spur in population increases the demand for housing societies and properties. Analysts expect a rise of 11% in population index till 2023 with the state being home to almost 24 million people.
4. Local Market
With the increase in demand for property, there is also an increase in property prices. Florida has seen an increase in property prices each month with the price of single-family homes going up by 9% this year, and the current market indicates an even steeper rise in the future.