Guide

Home > Money Guide

Investing in the Sunshine State is a Smart Move

Unbeknownst to many, Florida has been, and continues to be one of the most popular locations to invest in real estate – for many more reasons than you may think. One of these reasons is that the number of cities in Florida that are alluring to outsiders is increasing. While just a few years ago Key West and Miami were the primary locations that had people flocking to the Sunshine State, today there are a slew of other spots that are becoming just as – if not more – attractive to either buy into or live in. 

Beachfront property has always been a fantastic opportunity to invest in when it comes to Florida for some obvious reasons: whether buyers choose to live in these homes or not, people continue to gather at these oceanic locales annually for a good old fashioned break. The result: skyrocketing profits yielded from summer rentals. While you are probably saying to yourself, “But beachfront properties are so expensive…” let’s have a look at the numbers in terms of revenue. Typically, beachfront property is rented on a weekly basis, and a one-week stay can typically yield around $500 - $5000; keeping in mind the not-so-profitable times around the month of September, it can be concluded that a typical Florida beachfront property can make somewhere around $120k per year. Not too shabby. Aside from making money from buying property in Florida, the quality of life experienced when actually living there is certainly noteworthy. 

Here are a few other factors to consider when deciding whether to invest in Florida:

• There are at least 300 days of sunshine annually in Florida 
• The average temperature in Florida is a perfectly comfortable 70 degrees F 
• Everything’s close to the coast: no spot in Florida is more than 60 miles from a shoreline
• There is no state income tax in The Sunshine State
• Believe it or not, Florida is the fastest growing state in all of the United States
• Florida hosts a massive demand for affordable housing
• The state boasts extremely affordable preconstruction prices, including low land and construction costs
• Out of the largest demographic in the United States, the Baby Boomers, 42% of them plan on retiring somewhere in the South East Sector of the U.S., Florida being their number one choice to land
• Major alterations are being made to the Panama Canal in order to soon permit large container ships to reach Florida by about 2014. The upshot: Florida will very shortly be a simple pit-stop for import distribution for the Eastern Seaboard. In addition, massive intermodal growth is in the works for Central Florida 
• Florida is a gateway to South America and Brazil’s most substantial trading partner

If you are looking for a commercial investment, Florida offers even more reasons to set up shop in The Sunshine State. Business ventures are virtually fail-proof there. It is one of the most popular tourist destinations in the US, and boasts a tropical climate that lasts all year long. With this is mind, business opportunities are sky-high. Whether it is a hotel, a restaurant, a spa, a bookstore, ice cream shop or a clothing boutique, Florida land is gold for entrepreneurs. All of these businesses cater to both locals and tourists, making it doubly profitable. What more do people love to do in a sunshine setting than call a great hotel home for a week, lounge at the pool or beach with a great book, end the evening with a great meal and dessert and conclude the day with a little retail therapy?! 

John Rochester of Expert Realty said, "The best part may be that today, Florida is a Buyer’s market. Nowadays, prices of homes all over the state are the most affordable they have been in more than a decade, not to mention real estate sales figures are increasing steadily. What does this mean? That the market is poised for even stronger development over the coming years. The collection of affordable homes is versatile, too, making investing all the more alluring. Even mortgage rates remain staggeringly low, leaving buyers with incredible power when it comes to transactions. In short: investors in Florida are getting more home for their buck."

If investing in Florida is starting to sound like something you may be in the market for, it is highly suggested you check out some of the most booming areas such as Clearwater, Tampa, Cape Coral, Orlando and of course, the staple hot-spots of the Sunshine State: Miami and the Keys. Each area boasts its own reasons for being a great location for Florida investors – and there are a lot more of them, too, so be sure to research carefully before honing in on your prized property.