The Property Type to Buy
Residential property is the ideal choice for investors. While commercial property is very lucrative, the price of commercial land is currently out of most investors price ranges. However, there is a lot of potential seen in the residential sector.
From Miami to Orlando and Jacksonville, people are buying residential properties. The best part is that there is still a surplus in properties available. Before the economic downturn, Florida had a housing inventory of roughly 50,000 homes for sale. This skyrocketed to 450,000 and in 2014, it is estimated that there will be 200,000 homes still for sale. From an investors standpoint, this is the time to buy.
Economic forecasts state that the economy will not pick up back to its normal pace until the 50,000 mark is reached again. With excess properties on the market, there are lots of cheap residential lots for sale that will lead to a huge ROI if properly developed.
Home prices are soaring at a much faster rate than predicated, and these rates will be discussed in the next section.
According to the Sun-Sentinel, Florida is now leading the countrys economic recovery. During the first quarter of 2014, the state was the fastest growing with unemployment declining and job creation increasing. Construction, the states strongest sector, is behind the states unemployment rate of just 6.1 percent and forecasts state that by 2017, job growth will drop unemployment rates to just 5.4 percent.
The ideal climate and growing economy has caused a boom in real estate sales in the state with residential properties being highly sought.
Florida Home Prices on the Rise
Florida home prices are skyrocketing. In fact, new home constructions have provided an ROI of 30 50 percent for investors in the state. These figures will continue rising, especially in cities that are in high demand, such as Orlando, Sarasota, Naples and Palm Bay.
Reports from 2013 show that home prices were increasing by 1 2 percent per month. Statistics from May of 2014 show that the prices of homes in Florida are continuing to rise. Based off of statistics provided by Realtor.com,
- Orlando has seen a 10.8 percent increase in home prices in the last year with a total listing increase of 26 percent from just a year ago.
- Fort Lauderdale has seen an 8.1 percent increase in home prices over the last 12 months and a listing increase of 19 percent over the same time span.
- West Palm Beach has seen an increase in home prices of 15.8 percent and a decrease in listings equal to 15 percent. Investors with prime real estate in this city will be able to demand higher prices.
- Tampa has seen home prices rise by 11.5 percent and total home listings rise by 6 percent in the past 12 months.
The Retirement Boom is Back
Retirement, especially in southern Florida is on the rise once again. This has caused a huge demand for land for sale in Florida. The population of retired residents is on the rise, and with Florida being one of the only states in the country that does not have a personal state income tax, many seniors are flocking to the state.
Retirees and foreign buyers are looking for homes in prime locations: near the beach, near lakes or on multiple acres of land.
Lots with acreage for sale in Florida are the prime choice amongst investors and provides the best opportunity for a quick sale and high profit margins.
Building is on the Rise
The active adult population has spurred a major rise in building, especially in Southwest Florida. Builders have noted that there has been a 20 25 percent increase in sales within the last year alone. Homes that are built on prime residential lots are extremely high in demand among this demographic.
Foreclosures in Florida are very time-intensive. Being a judicial foreclosure state, many of the homes that were in potential foreclosure have now been released. Land and residential property are being made available quickly with savvy investors jumping on the opportunity to buy land for sale in Florida at well below the market rate.
Investing in land in Florida is currently a great investment. With rising prices and a high demand, a smart investor can easily make a 30 50 percent profit on their investment.